The AMD (NASDAQ:AMD) price target was lifted to $220 per share by UBS analysts in a note Thursday, with analysts saying that the company's tactical setup around earnings is complicated due to the recent rally.
In the earnings preview note, analysts stated AMD's stock "can keep marching higher through this year."
In addition, UBS is now more confident in AMD's data center GPU revenue opportunity and is significantly raising its CY24/CY25 estimates.
"Recent channel and customer checks confirm our view that AMD has firm demand commitment for ~400k+ MI300A/X units for C2024," analysts wrote. "This is a number that is fairly consistent with where we have seen demand since last summer but we've been wary of double ordering and unsure of supply."
"Even assuming a very conservative ASP (which could be as high as $20k+ for some customers), this suggests $5B for data center GPU is a pedestrian target for this year and even this implies that AMD exits the year at a run-rate that could be close to $10B/yr with AMD still likely to grow GPU units Q/Q through much of 2025," added analysts.
UBS now sees AMD annualizing $6 or more in EPS exiting this year and pushing $8 annualized once we get to the second half of 2025.