UBS Raises AMD Stock Target After AI Day Presentation
Following Advanced Micro Devices' (AMD) Advancing AI 2026 keynote on July 23, UBS analyst Timothy Arcuri quickly raised his price target for the stock to $730 from $700. The adjustment came within hours of AMD's event and was driven by strong signals in its server CPU business rather than GPU performance alone. UBS now estimates that AMD’s server CPUs generate gross margins about 10 percentage points higher than the company average, which could allow for aggressive pricing on future GPUs without hurting profits. CEO Lisa Su highlighted a revised $220 billion market forecast for server CPUs by 2030 and confirmed production of its Helios rack-scale system. UBS projects AMD’s server CPU revenue to reach approximately $60 billion in calendar year 2028, with earnings per share estimates rising from around $19 in 2027 to about $27.57 (potentially reaching $30) by 2028.
