UBS Raises AMD Price Target to $730, Reiterates 'Buy' Rating

July 24th, UBS raised AMD's price target from $700 to $730, maintaining a "Buy" rating. UBS expects AMD's earnings per share to be around $19 in 2027, rising to $27.57 in 2028, close to $30, significantly higher than the consensus expectation on Wall Street of around $19 in 2028.

UBS believes that the rapid growth of the server CPU business and a gross margin about 10 percentage points above the company's average will provide AMD with a "margin protection umbrella," allowing it to launch the MI500 series in 2027 at a more competitive price to further expand its data center GPU market share.

Following TSMC's increase in capital expenditure, UBS is more optimistic about AMD's supply improvement, expecting server CPU revenue to reach around $35 billion in 2027 and potentially up to $60 billion in 2028. Its forecast of $44 billion in data center GPU revenue for 2027 may still be conservative; after a 75% price increase in the past 3 months, AMD remains UBS's top pick.