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UBS maintained its buy rating and $150.00 price target on AMD (NASDAQ:AMD), currently trading at $116.23 with a market capitalization of $188.5 billion, following the chipmaker’s artificial intelligence event. The research firm described the event as "largely in-line w/expectations," with Amazon (NASDAQ:AMZN) emerging as a new customer and a surprise appearance by OpenAI’s Sam Altman. According to InvestingPro data, AMD has demonstrated strong revenue growth of 21.7% over the last twelve months, positioning itself as a prominent player in the Semiconductors industry.
The event primarily showcased the launch of AMD’s MI355X chip, while the company also committed to releasing some variant of its MI400 by mid-2026. AMD emphasized the size and faster growth of the inference market, which UBS noted aligns well with AMD’s structural advantages in HBM memory bandwidth. With a P/E ratio of 86.9x and a beta of 1.99, InvestingPro analysis indicates the stock exhibits significant growth characteristics and higher volatility compared to the broader market.
This advantage will extend to AMD’s MI400 rack-scale product, now called "Helios," which will offer 1.5 times more HBM4 capacity and bandwidth than Nvidia (NASDAQ:NVDA)’s Vera Rubin "Oberon" system. Both products appear to be on similar launch timelines, according to UBS.
AMD has chosen Ethernet for scaling up inside the rack, which UBS views as positive for Broadcom (NASDAQ:AVGO). The research firm suggested this choice may be due to AMD’s struggles with its null-Fabric based UALink, which UBS believes "is not well suited to coherently string together a lot of GPUs."
UBS indicated the event did not materially change the investment outlook for AMD in either direction. The firm noted it "would not be surprised to see the market ’sell’ the event given the recent run-up" in AMD’s share price. Based on InvestingPro Fair Value analysis, AMD currently appears undervalued, with 14 additional ProTips and a comprehensive Pro Research Report available for deeper insight into the company’s financial health and growth prospects. Investors can access the full analysis, including detailed valuation metrics and growth projections, through an InvestingPro subscription.
In other recent news, AMD announced the official launch of its Instinct MI350 Series AI accelerator chips, now in production and shipping to lead partners, with volume revenue ramp expected to begin in the third quarter. This development has caught the attention of several analyst firms. Benchmark reiterated its Buy rating and $170 price target, citing AMD’s competitive AI roadmap and expected market share gains. Stifel also maintained a Buy rating with a $132 price target, highlighting AMD’s expanded AI roadmap and the company’s commitment to an open AI ecosystem. Cantor Fitzgerald reaffirmed its Overweight rating and $140 price target, noting the potential for significant revenue growth in AMD’s Data Center GPU segment by 2026. Evercore ISI raised its price target to $144 from $126, maintaining an Outperform rating, and cited increased visibility on AMD’s datacenter GPUs as a reason for the adjustment. Analysts generally view AMD’s recent developments as positive steps in its AI strategy and execution.
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