UBS analysts see potential upside to Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD)’s third quarter 2025 financial results, driven by strong server and client central processing unit (CPU) demand.
In a note to clients on Monday, the analysts wrote that AMD’s full year revenue guidance could hit $9.5 billion, above their $9.3 billion forecast, boosted by renewed server upgrade activity as the industry embraces new strategies to prepare for more AI processing in the data processing market.
They also anticipate AMD providing a “very bullish” multi-year outlook for its data center graphics processing unit (GPU) business.
The UBS equity research team believes there is enough customer GPU interest for AMD to generate $14 billion in revenue during calendar year 2026 and they model the business to double again in 2027, driven in large part by the company’s announced deal with OpenAI.
They also believe AMD may be holding off releasing any big news until the company’s upcoming Analyst Day on November 11.
UBS analysts maintained their ‘Buy’ rating and 12-month target price of $265 per share on AMD, given its recent outperformance.
AMD shares rose 0.6% to $254.51 in midday trading on Monday.