Advanced Micro Devices is likely to attract more customers and expand its semiconductor chip businesses, pushing the stock higher, according to UBS. The investment bank has a buy on the chip designer and manufacturer, and raised its 12-month price target to $700 from $670, implying 28% upside from Tuesday’s close. “Customer-wise, we have always maintained that Amazon will be a major MI450x customer, and we now believe Anthropic might also be on the customer list,” analyst Timothy Arcuri wrote Wednesday to clients. “Additionally, we could see AMD partnering with [Cerebras Systems] on a fast inference solution … and maybe announcing a deeper and broader push into custom [Application-Specific Integrated Circuits] for the data center.” Shares of AMD have more than doubled in just the past three months, climbing 112% through Tuesday, as the company has capitalized on a boom in data centers linked to artificial intelligence development and adoption. The chipmaker has captured a large share of the central processing unit market, striking deals with AI platform OpenAI. AMD 3M mountain AMD has more than doubled in three months But AMD appears poised for even larger market shares gains amid signs that capacity constraints at Taiwan Semiconductor Manufacturing, which provides vital packaging services for AMD’s popular AI accelerator chips, are easing, according to UBS. “Overall, our supply chain work is very bullish, with significant upticks in [Chip-on-Wafer-on-Substrate ] allocation for C2027,” Arcuri wrote. UBS’ call matches the Wall Street consensus, where 45 of 55 analysts covering AMD rate it either a buy or strong buy, LSEG data shows.
