AMD stock price target raised to $300 from $265 at UBS ahead of analyst day

Investing.com - UBS raised its price target on AMD (NASDAQ:AMD) to $300 from $265 while maintaining a Buy rating ahead of the company’s upcoming analyst day. The new target represents potential upside from AMD’s current trading price of $250.05, though InvestingPro data indicates the stock is already trading near its 52-week high of $267.08 and appears overvalued based on Fair Value estimates.

The firm noted that while there wasn’t significant new information in AMD’s recent earnings report to change investor sentiment, it cautioned against selling the stock before the analyst day, which will be the company’s first since the launch of ChatGPT. This caution comes despite InvestingPro data showing AMD trading at a high P/E ratio of 151.2, significantly above the sector average.

UBS expects AMD to outline a path to $15-20 in earnings per share later this decade during the event, with potential additional catalysts including Amazon Web Services announcements likely coming at the AWS re:Invent conference in early December. For context, AMD’s current diluted EPS stands at $1.67 for the last twelve months, with analysts forecasting $3.94 for fiscal year 2025.

The investment bank observed that AMD’s recent results showed some AI GPU sales appeared to shift from the fourth quarter into the third quarter, possibly involving Oracle. AMD addressed concerns about a potential slowdown in its AI GPU business in the first half of 2026, though it maintained that GPU sales would be weighted toward the second half of the year due to the OpenAI ramp. This growth trajectory aligns with AMD’s impressive 27.17% revenue growth over the last twelve months.

While investors are primarily focused on AMD’s AI GPU opportunity, UBS highlighted that agentic AI is driving strong refresh cycles in traditional server infrastructure, estimating this segment will represent more than 35% of AMD’s earnings per share in 2026 as the company benefits from Intel’s "lack of a real roadmap." With a market capitalization of $405.79 billion, AMD has established itself as a prominent player in the semiconductor industry. Investors seeking deeper insights can access AMD’s comprehensive Pro Research Report, available exclusively on InvestingPro, which offers expert analysis on what truly matters for this high-growth tech stock.

In other recent news, AMD has seen a series of positive developments regarding its financial performance and future prospects. The company reported strong third-quarter revenue growth for 2025, exceeding consensus expectations, as noted by Roth/MKM. Additionally, AMD provided guidance for the fourth quarter that surpassed market predictions, despite not including revenue from China-specific products. Following these results, several firms have adjusted their price targets for AMD. Loop Capital increased its target to $290, citing better-than-expected second-half results and future revenue projections from key product wins. Piper Sandler raised its price target to $280, highlighting AMD’s exceptional performance in the data center segment, which grew 22% year-over-year. Roth/MKM and Baird both set their targets at $300, with Baird pointing to potential catalysts related to artificial intelligence. Jefferies maintained its $300 price target, emphasizing AMD’s growth in server CPUs driven by artificial intelligence demand. These upgrades reflect a positive outlook from analysts on AMD’s future performance.

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