BlockBeats news: On July 24, UBS raised AMD's target price from $700 to $730 and maintained a "Buy" rating. UBS expects AMD's earnings per share to reach approximately $19 in 2027 and rise to $27.57 in 2028, nearing $30—significantly higher than Wall Street's consensus estimate of around $19 for 2028.
UBS believes that the rapid growth of AMD’s server CPU business and a gross margin approximately 10 percentage points above the company average will provide AMD with a "margin umbrella," enabling it to launch the MI500 series at a more competitive price by 2027 and further expand its market share in the data center GPU market.
Following TSMC's increase in capital expenditures, UBS has become more optimistic about AMD's supply improvements, forecasting server CPU revenue of approximately $35 billion in 2027 and as high as $60 billion in 2028. Its prediction of $44 billion in data center GPU revenue for 2027 may still be conservative; despite a roughly 75% stock price increase over the past three months, AMD remains UBS's top pick.