UBS said Advanced Micro Devices is likely to win more customers and expand its semiconductor chip business, boosting its stock price. The investment bank is buying the chip designer and manufacturer, raising its 12-month price target to $700 from $670, implying a 28% upside from Tuesday’s closing price. “In terms of customers, we have always maintained that Amazon will be a major customer for MI450x, and we now believe that Anthropic may also be included in the list of customers,” analyst Timothy Arcuri said in a letter to customers on Wednesday. “Additionally, AMD could partner with (Cerebras Systems) on high-speed inference solutions…and perhaps announce a deeper and broader focus on custom[application-specific integrated circuits]for data centers.” AMD stock has more than doubled in the past three months, rising 112% through Tuesday, as the company rides on a data center boom related to the development and deployment of artificial intelligence. The chipmaker has signed a deal with AI platform OpenAI to gain a significant share of the central processing unit market. AMD 3M Mountain AMD more than doubles in three months But AMD appears poised to capture even bigger market share as capacity constraints at Taiwan Semiconductor Manufacturing Co., which provides critical packaging services for AMD’s popular AI accelerator chips, show signs of easing, according to UBS. “Overall, our supply chain efforts are very bullish, with (chip-on-wafer-on-substrate) allocations increasing significantly heading into C2027,” Arcuri wrote. Another potential catalyst could come next week when AMD hosts its “Advancing AI 2026” event in San Francisco on July 22nd and 23rd. UBS’s judgment is in line with Wall Street consensus, with 45 of the 55 analysts covering AMD rating the company a “buy” or “strong buy,” according to LSEG data.
