UBS raises its AMD target price to $730 and maintains a “Buy” rating

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Mars Finance news: On July 24, UBS raised its target price for AMD from $700 to $730 and maintained a “Buy” rating. UBS expects AMD’s earnings per share to be about $19 in 2027 and rise to $27.57 in 2028, approaching $30, which is significantly higher than the Wall Street consensus expectation of about $19 for 2028. UBS believes that rapid growth in the server CPU business and a gross margin about 10 percentage points above the company’s average will provide AMD with a “margin-protection umbrella,” enabling it to launch the MI500 series at more competitive prices in 2027 and further expand its data center GPU market share. After TSMC raised its capital expenditure, UBS is more optimistic about AMD’s supply improvement, forecasting server CPU revenue of about $35 billion in 2027 and up to $60 billion in 2028. Its forecast for 2027 data center GPU revenue of $44 billion may still be somewhat conservative; after the stock price rose about 75% over the past 3 months, AMD remains UBS’s top preferred pick.
AMD-2.93%
TSM-3.26%
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