Advanced Micro Devices shares have risen sharply in recent months, yet UBS believes there is still room for growth. The bank maintains a buy rating on the stock and has lifted its price target to $730 from $700, implying roughly 35% upside from Thursday’s close. Analyst Timothy Arcuri noted in a client note that earnings estimates are being increased and the price target raised to $730 based on a new outlook that C2028 earnings per share could approach $30, following AMD’s disclosure of its [central processing unit] roadmap, market share, and [total addressable market] at its AI Day event. He added that AMD remains a compelling investment despite its [large] rally over the past [three months]. The Advancing AI 2026 conference, held this week in San Francisco, saw AMD forecast the AI accelerator market reaching about $1.4 trillion by 2030—a significant increase from its earlier projection of $500 billion by the end of 2028. The company said its GPUs are expected to account for the lion’s share of that market. Year‑to‑date, AMD’s stock is up about 152%, with gains accelerating to a 55% rise over the past three months amid rising demand for its chips driven by the AI boom. AMD reportedly holds nearly half of the data‑center CPU market, and its share could expand further through partnerships with Microsoft Azure, Meta Platforms, and AI startup OpenAI. UBS’s view aligns with the broader Wall Street consensus: of the 54 analysts covering AMD, 45 rate the stock a buy or strong buy, according to LSEG data.
Source link
