UBS Raises AMD Stock Target After AI Day Event
Following Advanced Micro Devices' (AMD) Advancing AI 2026 keynote on July 23 in San Francisco, UBS analyst Timothy Arcuri quickly raised his price target for the stock to $730 from $700 within a day. The move reflects strong signals about AMD's server CPU business and its potential impact on profitability. Arcuri emphasized that higher-than-expected gross margins—estimated at 10 percentage points above AMD’s corporate average—for server CPUs are key drivers behind the target increase. This margin advantage, combined with projected growth in this segment, could allow AMD to price future GPU products more aggressively without harming profits. The analyst also highlighted long-term revenue projections for calendar years 2027 and 2028. AMD CEO Lisa Su announced a revised forecast of $220 billion server CPU market size by 2030 during the event, up from around $25 billion today. AMD already holds nearly half this segment’s current revenue share. The company also confirmed production timelines for its Helios rack-scale system and secured major customer commitments with OpenAI, Meta, Anthropic, and Microsoft.
Topics: AI Day AMD price target adjustment server CPU margins