Advanced Micro Devices (AMD, Financials), a U.S. semiconductor company that designs processors and graphics chips for PCs, servers, gaming systems and artificial intelligence workloads, received a higher price target from UBS ahead of its upcoming AI event.
The firm lifted its 12-month target to $700 from $670 and kept its Buy rating. UBS said recent supply-chain checks point to stronger demand for AMDs AI accelerators through 2027.
Next weeks Advancing AI event is expected to focus on the companys product roadmap. Investors will be listening for updates on the MI450X accelerator, the MI500 GPU family and AMDs next server processors.
UBS believes Amazon could become a major customer for the MI450X platform. Anthropic may also adopt the chips, although the firm cautioned that new customer announcements may not come during the event.
The bank now expects AMD to generate $83.4 billion in revenue in 2027, up from its previous estimate of $79.2 billion. It also raised its 2027 earnings forecast to $14.63 per share.
The next catalyst will be AMDs AI event, where management may offer a clearer view of customer demand and its challenge to Nvidia.