Here's Why UBS Lowered Advanced Micro Devices (AMD) Price Target

Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the 13 Most Profitable Growth Stocks to Buy Right Now. On March 2, UBS analyst Timothy Arcuri reiterated a Buy rating on Advanced Micro Devices Inc. (NASDAQ:AMD) while lowering the firm’s price target. He reduced the firm’s price target on the stock from $330 to $310.

The analyst continues to express confidence in the company’s long-term outlook, supported by AI-driven data center expansion and rising demand. He expected revenue growth to accelerate in 2027. Advanced Micro Devices Inc. (NASDAQ:AMD) also suggested it may add a third large gigawatt-scale customer, in addition to  Meta Platforms and OpenAI. Timothy Arcuri believes that the customer could potentially be Microsoft.

Moreover, the company rejected concerns that warrant agreements and 10% equity deals are required for gigawatt-scale contracts. Advanced Micro Devices Inc. (NASDAQ:AMD) described these structures as unique to large AI model developers that control much of the ecosystem. It views such equity partnerships as a long-term benefit. The company believes the partnerships can help speed up market share gains in accelerators.

In addition, Advanced Micro Devices Inc. (NASDAQ:AMD) remains confident in its CPUs (central processing units) business. It projects growth to exceed its modeled 18% annual rate, supported by stronger pricing and higher volumes. The analyst views the stock as an attractive opportunity in the second half of 2026.

Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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