AMD Stock Gets a Price Target Boost from UBS' Top Analyst Ahead of Q2 Earnings

UBS analyst Timothy Arcuri has boosted his price target for AMD stock from $150 to $210, representing a 21% upside, citing growing demand in PC and data center markets and stronger investor sentiment ahead of Q2 earnings on August 5. Arcuri sees AMD's decision to raise the price of its MI350 AI chip as a sign of growing confidence in its product line and expects the company to beat Wall Street estimates.

UBS analyst Timothy Arcuri has significantly raised his price target for Advanced Micro Devices (AMD) stock, from $150 to $210, representing a 21% upside. This move comes amidst growing demand in the PC and data center markets, as well as strengthening investor sentiment ahead of AMD's Q2 earnings report on August 5 [1].

Arcuri's bullish outlook is bolstered by several key factors. First, AMD's decision to raise the price of its MI350 AI chip is seen as a testament to the company's growing confidence in its product line. This move signals a potential increase in data center revenue, which could reach $500 million, according to GuruFocus.com [2].

Moreover, AMD's aggressive investments in AI-specific hardware and strategic partnerships are paying off. The company's Instinct MI355X GPU, priced at $25,000, has become a linchpin for AI titans like Oracle, Tesla, and OpenAI. The upcoming MI400 Series, launching this year, is expected to deliver 10x faster inference performance on Mixture of Experts (MoE) models compared to its predecessors [3].

Arcuri also highlights AMD's open-ecosystem strategy, which has led to partnerships with major enterprises. For instance, Oracle's deployment of 131,702 MI355X GPUs in its zettascale AI clusters underscores AMD's growing influence in cloud computing [3]. This strategy not only generates recurring revenue but also provides AMD with valuable feedback to refine its software stack.

Additionally, AMD's focus on energy efficiency is quietly reshaping the Total Cost of Ownership (TCO) equation. The company has already surpassed its 2025 energy-efficiency goals, achieving a 38x improvement over 2020 [3].

Arcuri expects AMD to beat Wall Street estimates in its Q2 earnings report. This positive outlook is supported by AMD's strong performance in the first quarter of 2025, which saw a 57% year-over-year revenue spike in its Data Center segment [4].

References:
[1] https://finance.yahoo.com/quote/AMD/news/
[2] https://www.gurufocus.com/stock/AMD
[3] https://www.ainvest.com/news/amd-ai-chip-gambit-term-buy-q2-earnings-2507/
[4] https://www.ainvest.com/news/amd-ai-chip-gambit-term-buy-q2-earnings-2507/