AMD stock rating reiterated by UBS at Buy with $210 price target

Investing.com - UBS has reiterated its Buy rating on AMD (NASDAQ:AMD) with a price target of $210.00, following the chipmaker’s recent earnings report that showed revenue beat and guidance above consensus. The stock, currently trading near its 52-week high of $182.50, has demonstrated remarkable momentum with a 58% surge over the past six months. According to InvestingPro analysis, AMD appears overvalued relative to its Fair Value, despite showing strong financial health metrics.

UBS analyst Timothy Acuri noted that while AMD beat revenue expectations and guided above consensus, the results largely aligned with investor expectations heading into the earnings announcement. The revenue beat was primarily driven by the gaming segment, while data center GPU business is expected to see a strong inflection in the second half of the year. AMD’s impressive 21.71% year-over-year revenue growth and robust gross profit margin of 53.58% underscore its strong market position. InvestingPro subscribers have access to 20 additional key insights about AMD’s financial performance and growth prospects.

Despite recent hyperscaler capital expenditure increases, AMD did not raise its full-year outlook for data center GPU business. However, UBS highlighted that excluding China, AMD’s data center GPU business is growing at a rate similar to NVIDIA (NASDAQ:NVDA) in the second half of 2025.

The firm expressed optimism about AMD’s market share growth potential in both server and desktop CPU segments, which represent approximately 35% of AMD’s revenue and are accretive to margins. UBS noted these segments show strong outlook, particularly as Intel (NASDAQ:INTC)’s roadmap faces challenges.

UBS slightly raised its estimates following the earnings call, projecting earnings per share of approximately $6.50 for next year and potentially around $8 for 2027, supporting the $210 price target and Buy rating.

In other recent news, Advanced Micro Devices (AMD) reported a 32% year-over-year increase in revenue for the second quarter of 2025, reaching $7.7 billion. This growth was primarily driven by strong sales of its EPYC and Ryzen processors. The company met earnings per share expectations at $0.48, though the stock saw a slight dip in aftermarket trading. Analysts have responded positively to these developments, with Barclays (LON:BARC) and Raymond (NSE:RYMD) James both raising their price targets to $200, citing strong artificial intelligence trends and robust performance in the Client and Gaming segments. Deutsche Bank (ETR:DBKGn) also raised its price target to $150, highlighting growth in AMD’s Instinct business and optimistic third-quarter guidance of $8.7 billion. Goldman Sachs, however, maintained a Neutral rating with a $150 price target, noting the stock’s potential to remain range-bound due to high investor expectations. These updates reflect a mix of positive earnings results and varying analyst perspectives on AMD’s future performance.

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