UBS Raises AMD Price Target to $700, Bullish on AI Chip Customer Expansion
Taylor Wilson
UBS raised its 12-month AMD price target from $670 to $700, maintaining a Buy rating with roughly 28% implied upside; the call rests on new AI-chip customers entering the picture and easing packaging constraints at TSMC.
The stock has already doubled — why does UBS still see upside?
AMD shares surged 112% in three months, yet UBS lifted the target by another $30 to $700.
This means → UBS believes the rally still has roughly 28% left to run after the doubling.
In plain terms = the stock doubled and the bank didn't call it expensive — it raised the bar, signaling fresh growth drivers ahead.
Who are the new customers, and why does it matter?
Analyst Timothy Arcuri said Amazon has long been seen as the lead customer for AMD's next-gen AI chip, the MI450x.
UBS now believes Anthropic may also join the customer roster.
This means → AMD's AI-chip buyer base is widening from cloud providers to AI-model companies — a structural broadening.
Arcuri added that AMD may partner with Cerebras Systems on a fast-inference solution and could push deeper into data-center custom ASICs — chips purpose-built to a client's specifications.
What is changing on the supply side?
UBS supply-chain checks show that TSMC's CoWoS packaging — an advanced process that bonds AI chips to high-bandwidth memory in one package — is seeing capacity constraints ease.
Arcuri wrote: "CoWoS allocations for 2027 are up significantly; our supply-chain findings are very positive."
In plain terms = AMD's AI chips were never the bottleneck — packaging capacity was. That queue is now loosening.
What does the rest of Wall Street think, and what could go wrong?
Of 55 analysts covering AMD, 45 rate it Buy or Strong Buy, in line with UBS.
This reflects a strong Street-wide consensus on AMD's position in the AI-chip race.
Two verification points remain: whether the new customers materialize on schedule and whether supply-bottleneck relief keeps pace with expectations — a miss on either front would pressure the current valuation.
Content is for reference only, not financial advice.