UBS Reiterates Buy Rating on AMD

UBS analyst Timothy Arcuri reiterated a Buy rating and $310.00 price target on AMD (NASDAQ: AMD).

“We emerged more confident in revenue upside for C2027 as the company is now suggesting there could be a third GW-scale customer beyond the deals it has struck with OpenAI and META.

While we can’t be sure who this is, MSFT seems to us the most likely.

Regarding investor concerns that the warrant structure and 10% equity stakes for META/OpenAI will now become pre-requisites for GW-scale engagement, AMD pushed back aggressively and indicated that it considers these to be unique deals targeted for LLM model builders because they are controlling so much of the ecosystem.

AMD also views this structure as accretive longer term and a vehicle to dramatically accelerate its share gains in the broader accelerator market.

AMD was very bullish on the CPU business and now sees upside to the LT financial model’s 18% market CAGR both from units and ASPs.

Overall, we emerge confident in our $310 PT and Buy rating, though we do believe AMD is probably more of a 2H:26 story as MI450 shipments related to the OpenAI deal commence, followed shortly thereafter by META shipments.”

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