Hedge funds are buying these two big tech stocks while selling two rivals
Investing.com - UBS has reiterated a Buy rating and $300.00 price target on AMD (NASDAQ:AMD), citing the company’s new financial model that delivered on expected earnings potential. The semiconductor giant, currently valued at $386.69 billion, trades at a P/E ratio of 127.75, reflecting high growth expectations.
UBS noted that AMD’s financial model achieved the "$20+ EPS bogey" that analysts and investors had anticipated, while near-term commentary on data center GPU supports UBS’s projection of approximately $10 EPS for calendar year 2027. This aligns with broader Wall Street sentiment, as the stock maintains a strong Buy consensus (1.57 rating) with analyst price targets ranging from $134.20 to $380.
The firm highlighted AMD’s customer commentary as "constructive," with the company affirming multiple customers will reach scale similar to OpenAI as soon as the MI450 generation becomes available in the second half of 2026 or first half of 2027.
Despite maintaining the $300 price target, UBS expressed some concern that High Bandwidth Memory (HBM) supply could pose a risk for AMD, while noting that a potential announcement by Amazon at AWS re:Invent in early December remains the only significant near-term catalyst.
UBS kept its calendar 2026/2027 EPS estimates largely unchanged but increased its calendar 2028 EPS projection to approximately $14 from about $12 previously, suggesting that if AMD achieves even "a decent fraction" of its outlined goals, the stock should continue to rise over the next 12 months. However, InvestingPro data indicates AMD may be overvalued at current levels, with revenue growth of 31.83% supporting its premium valuation. For deeper insights into AMD’s valuation and 20+ exclusive ProTips, check out the comprehensive InvestingPro Research Report.
In other recent news, Advanced Micro Devices (AMD) has been the focus of several analyst updates following its recent investor presentations. Melius Research has raised its price target for AMD to $380, highlighting the company’s positive margin guidance and expectations for over 35% revenue growth in the coming years. Similarly, BofA Securities maintained its $300 price target, emphasizing AMD’s expanded vision for the artificial intelligence market, projecting a total AI silicon market exceeding $1 trillion by 2030.
Barclays reiterated an Overweight rating with a $300 price target, showing confidence in AMD’s competitive positioning in AI markets. Bernstein SocGen Group maintained a Market Perform rating with a $200 price target, acknowledging AMD’s ambitious 3-5 year targets for revenue and earnings growth. Evercore ISI also adjusted its price target to $283, citing increased confidence in AMD’s MI450 product ramps and market share gains. These updates reflect various perspectives on AMD’s growth prospects and strategic positioning in the technology sector.
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