Advanced Micro Devices (AMD) has experienced a significant increase in its stock price, rising 152% year to date, with a notable 55% jump in the last three months. UBS analyst Timothy Arcuri has reaffirmed a buy rating on AMD, raising the price target from $700 to $730, based on expectations that the company's earnings per share could approach $30 by 2028.
This optimism follows AMD's recent AI Day presentation, where the company projected the AI accelerator market to reach approximately $1.4 trillion by 2030, a substantial increase from its previous estimate of $500 billion. AMD's graphics processing units are expected to dominate this market.
The company currently holds nearly half of the data center CPU market, with potential for further growth through partnerships with major firms like Microsoft Azure and Meta Platforms. UBS's outlook aligns with the broader consensus on Wall Street, where 45 out of 54 analysts recommend buying AMD shares