UBS raised its 2027 price target for Advanced Micro Devices to $670 from $455 and lifted server CPU revenue forecasts to $16 billion in 2026, $23 billion in 2027 and $29 billion in 2028. Shares have gained 275% over the past year, but UBS cautioned valuation pressures and execution risks may persist.
UBS analysts raised their 2027 price target for Advanced Micro Devices to $670 from $455, reflecting stronger-than-expected demand trends for the company’s server CPUs. The upgrade maintains a Buy rating and underscores confidence in AMD’s growth trajectory within the data center market.
The firm boosted its revenue estimates for AMD’s server CPU business to $16 billion in 2026, $23 billion in 2027 and $29 billion in 2028, up from prior forecasts. UBS also lifted its 2030 projection to $50 billion from $41 billion, assuming sustained adoption of standalone server processors.
Advanced Micro Devices shares have climbed approximately 275% over the past year, trading above what some analysts consider fair value. The stock’s rally reflects strong execution in both CPU and GPU segments, driven by ongoing AI and cloud infrastructure investments.
Despite the bullish outlook, UBS warned that multiple compression could occur if growth slows or competition intensifies. Execution risks remain in ramping production and delivering on ambitious server CPU targets amid a rapidly evolving semiconductor landscape.
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