Analysts at UBS Say Advanced Micro Devices Stock Could Rally to $670

Advanced Micro Devices (AMD) has been one of the most explosive tech stocks on the market. Since March, AMD stock has rallied from around $200 to a recent high of $584.73 — and it could race even higher. In fact, UBS analysts say it could rally to $670 per share, providing one of the highest price targets for AMD to date. That's all thanks to the idea that the next big phase of AI growth won’t be driven solely by graphics processing units (GPUs), but also by central processing units (CPUs) designed to support agentic AI. If UBS is right, AMD could be about to enter another substantial growth cycle.

Even better, according to the firm, the total addressable market (TAM) for server CPUs could grow from about $30 billion in 2025 to roughly $170 billion by 2030. UBS also believes that AMD’s annual server CPU revenue could jump from about $16 billion in 2026 to around $50 billion in 2030 as enterprise AI accelerates.

Agentic AI Is a Game Changer for AI Infrastructure

According to AMD CFO Jean Hu, the CPU space could be the next big beneficiary of the AI boom. Hu added that agentic AI is driving “tremendous” CPU demand. “As agentic AI activity grows, high-performance CPUs coordinate workflows, process and move data, and manage the many operations that occur around the model," the company noted in a blog post in March.

Unlike traditional chatbots, agentic AI can think through problems, complete complex tasks, make decisions, and manage workflows with little human involvement. That requires much more computing power, especially from CPUs, which handle memory management, coordinate workloads, and run complex software. According to UBS, the agentic AI shift will lead to higher demand for standalone CPU racks inside data centers, creating a major opportunity for companies with high-performance server processors.

In addition, technology companies continue to pour hundreds of billions of dollars into AI infrastructure. Hyperscale cloud providers — including Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) — are racing to expand data-center capacity to meet surging AI demand. As I previously noted in December 2025, an estimated $5.2 trillion in AI infrastructure investments will be needed by 2030, according to a McKinsey report. While GPUs dominate headlines, CPU demand could easily explode higher.

Strong Financial Momentum Already Exists

AMD's fundamentals are only getting stronger. In May, the company reported first-quarter revenue of $10.3 billion, up 38% year-over-year (YOY). Even more impressive, its Data Center segment generated $5.8 billion, a 57% increase from the prior year. CEO Lisa Su described the data-center business as the company's main growth engine as enterprise AI adoption continues expanding across multiple industries.

Moving forward, AMD expects to see Q2 revenue between $10.9 billion and $11.5 billion, with the midpoint at $11.2 billion.

“We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with Data Center now the primary driver of our revenue and earnings growth," Su noted alongside the Q1 results. “We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators. Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand. Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations and a growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory."

What Do Analysts Think About AMD Stock?

Of the 45 analysts covering AMD stock, 35 analysts have a “Strong Buy" rating, two have a “Moderate Buy,” and eight analysts have a “Hold” rating. The mean target price of $487.37 implies roughly 10% potential downside from current levels. Meanwhile, UBS' target of $670 suggest potential upside of 23%, while the Street-high price target of $700 points to as much as 29% possible growth from here.