UBS Raises AMD Price Target to $670, Forecasts $29B CPU Revenue by 2028
AMD•UBS lifted Advanced Micro Devices’ price target to $670 from $455, forecasting CPU segment revenue of $23 billion in 2027 and $29 billion in 2028 based on accelerating demand for standalone agentic AI racks. The firm cites AMD’s high core counts, multithreading performance and x86 ecosystem leadership as key drivers.
1. UBS Raises AMD Price Target
UBS raised Advanced Micro Devices’ price target to $670 from $455 while keeping its CPU multiple at 35x forward earnings, signaling stronger expectations for AMD’s CPU-driven valuation amidst growing AI infrastructure demand.
2. Revenue Forecasts Lifted
The bank lifted its CPU revenue forecasts to $23 billion in 2027 and $29 billion in 2028, up from prior estimates of $21 billion and $27 billion. These upgrades stem from predicted uptake of AMD’s EPYC processors in high-core-count AI server applications.
3. Competitive Advantages
Analysts emphasize AMD’s advantages in core density, multithreading performance and deep integration with the x86 software ecosystem. These factors position AMD to secure an outsized share of a standalone agentic AI rack market expected to split roughly 60% x86 and 40% Arm architectures.
4. Market Outlook and Competition
AMD faces competition from Intel’s roadmap and Arm-based solutions, but Intel’s supply execution challenges may amplify AMD’s gains. Sustained momentum in data center CPU deployments will be critical for validating UBS’s bullish price target and revenue forecasts.
