UBS reiterated its Buy rating and $265 price target on Advanced Micro Devices Inc. (NASDAQ: AMD), forecasting upside to third-quarter results driven by robust demand across its server, client CPU, and data center GPU businesses.
The firm said it expects AMD’s revenue to trend toward the upper end of guidance, near $9 billion, with strength in server sales potentially supporting higher gross margins. Data center GPU revenue was projected at approximately $1.7 billion for the quarter.
For the fourth quarter, UBS maintained its revenue estimate of $9.3 billion — roughly $200 million above Street consensus — but said AMD could guide as high as $9.5 billion, reflecting continued demand from cloud and AI customers as the industry scales infrastructure for data processing.
The firm forecast data center GPU revenue of about $2.4 billion in the fourth quarter, up $700 million from Q3, driven by ramping MI355x chip shipments to key customers such as Meta Platforms and Oracle Cloud.
UBS added that AMD’s client computing business should perform flat to slightly higher quarter-over-quarter, a stronger result than typical seasonality. While it expects first-quarter 2026 revenue to dip modestly on normal seasonality, analysts said the company is likely to deliver a bullish multi-year outlook for its data center GPU segment, underpinned by the anticipated launch of MI455 next year.
