Advanced Micro Devices, Inc. (NASDAQ: AMD) is catching the attention of stock analysts, particularly in the AI sector. On October 27, UBS reaffirmed its Buy rating on AMD’s stock, setting a price target at $265. This rating was given ahead of the company releasing its third-quarter financial results.
UBS holds a positive outlook on AMD, citing continued growth in GPUs, recent server updates, and significant spillover effects from AI developments. They predict that AMD’s third-quarter performance will likely align with the upper end of the company’s revenue forecast of $9 billion, largely due to strong results from its server and client CPU divisions.
This quarter, revenue from data center GPUs is anticipated to hit around $1.7 billion. For the fourth quarter, AMD is maintaining its sales estimate at approximately $9.3 billion, with a possibility of reaching $9.5 billion. This projection is underpinned by new server upgrades and AI influences on traditional computing setups.
“For FQ4, we are still satisfied with the $9.3 billion estimate (+$200 million above the Street), but we can see how AMD could reach a high of $9.5 billion. This aligns with industry strategies to adapt for heightened AI processing demands in the data center market. Additionally, AMD’s client business is expected to remain stable or even increase, propelled by new server upgrades and AI spillover effects. Approximately $2.4 billion is projected—up around $700 million from FQ3 due to MI355x increases (META, OCI, etc.). AMD has indicated that Q1 2026 may see slight declines due to typical seasonal fluctuations, but we anticipate a promising multi-year forecast for its data center GPU segment.”
Advanced Micro Devices, Inc. specializes in developing and marketing semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.
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