AMD Gains More Upside as UBS Lifts Target to $700*

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•  24 Jul 2026
 

$AMD Advanced Micro Devices shares have already risen more than 150% since the start of 2026 and reached about $552, while UBS believes further gains remain. Uzi Gerstman reported the analyst update on July 24, 2026, covering recommended stocks, AMD, Nvidia, and artificial intelligence. A rally of this scale would lead some investors to consider taking profits, but UBS moved in the opposite direction by raising its price target to $700 from $670 and maintaining a Buy rating. The analyst catalyst follows an extensive supply chain review indicating that demand for the company AI accelerators is substantially higher than previous estimates and extends deep into 2027.

UBS is focused primarily on the revenue scenario for graphics processors. If Advanced Micro Devices signs three major cloud customers, with each operating a deployment exceeding one gigawatt, the company could generate $40 billion to $50 billion in GPU sales as early as 2027. That amount approaches the scale of the company entire annual revenue until recently. The scenario strengthens the earnings momentum implied by large cloud deployments.

UBS also raised its broader financial model beyond the individual customer scenario. The 2027 revenue forecast increased to $83.4 billion from $79.2 billion, while estimated earnings per share rose to $14.63. The 2028 earnings forecast climbed to $21.11 per share. This combination of sales growth and improving profitability is what supports the higher price target and potential multiple expansion.

Most of the optimism rests on the product lineup itself. The MI350 series, already shipping in volume and manufactured on Taiwan Semiconductor Manufacturing Company 3 nanometer process, carries 288 gigabytes of HBM3E memory. In the MI355X version, Advanced Micro Devices claims 1.6 times the memory capacity and twice the precision computing performance compared with Nvidia B200 chip. For memory intensive data centers, that difference changes the cost benefit calculation.

The next generation is already in advanced preparation. Helios systems expected in the second half of 2026 package 72 MI455X accelerators in a single rack, with 31 terabytes of HBM4 memory and performance of up to 2.9 exaflops when running models. The MI450X chip and MI500 family planned for 2027 are next in line. The launch cadence supports continued positioning around artificial intelligence infrastructure demand.

Nvidia still controls the market with an estimated 80% to 85% share of training and inference accelerators. The California company continues to report record demand for artificial intelligence data centers and continues to beat forecasts. That dominance nevertheless creates an opening for Advanced Micro Devices as cloud operators seek a second supplier to reduce dependence and manage pricing. Analysts who recommend Nvidia are already modeling market share erosion from about 80% toward 70% by 2027, partly because of Advanced Micro Devices and custom chips, creating room for institutional flows toward alternative suppliers.

Valuation remains the main concern for cautious investors. A stock that has already more than doubled trades at multiples that assume nearly flawless execution, and any failure to secure a major cloud customer could drive a sharp reversal. UBS is positioning around the view that the growing backlog of computing orders and the pace of new product launches will be sufficient to justify the new target. The investment case therefore depends on converting product strength and cloud demand into the projected revenue scale.

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