UBS Cuts Advanced Micro Devices Price Target to $310 on AI Data Center Outlook
UBS analyst Timothy Arcuri cut Advanced Micro Devices’ price target from $330 to $310 while maintaining a Buy rating and forecasting revenue acceleration in 2027. He highlighted AI-driven data center demand, a potential third gigawatt-scale customer, and CPU sales growth above an 18% annual rate with stronger pricing and volumes.
1. UBS Price Target Adjustment
UBS analyst Timothy Arcuri lowered Advanced Micro Devices’ price target from $330 to $310 while reaffirming a Buy rating. He attributed the cut to near-term valuation considerations despite a positive long-term outlook driven by AI and data center deployments.
2. AI Data Center Expansion and New Customer Potential
Arcuri highlighted accelerating demand for AMD’s AI-focused accelerators in data centers and mentioned the prospect of adding a third gigawatt-scale customer, potentially Microsoft, alongside existing partnerships with Meta and OpenAI.
3. CPU Business Outlook and Equity Partnerships
Advanced Micro Devices expects its CPU segment to exceed an 18% annual growth rate, supported by improved pricing and higher volumes. The company views unique equity partnerships with large AI developers as a strategic advantage to accelerate market share gains without requiring warrant agreements.