Analysts Stay Bullish on AMD as AI GPU Momentum Builds Ahead of Earnings

Core Viewpoint - Advanced Micro Devices, Inc. (AMD) is being closely monitored by analysts, with UBS maintaining a "Buy" rating and a price target of $265 ahead of the company's Q3 results [1]. Group 1: Financial Performance - UBS is optimistic about AMD's Q3 performance, expecting it to approach the high end of the company's $9 billion revenue guidance, driven by strong demand in both server and client CPU segments [2]. - The firm forecasts data center GPU revenue to reach approximately $1.7 billion for Q3, with a revenue estimate of around $9.3 billion for Q4, potentially guiding as high as $9.5 billion due to renewed server upgrades and AI-related spillover effects [3][4]. Group 2: Market Dynamics - The anticipated growth in AMD's revenue is supported by renewed server upgrade activity and the integration of AI into traditional computing infrastructure, as the industry prepares for increased AI processing demands [4]. - AMD's client business is expected to remain flat to up, which is better than the normal seasonal trends, while data center GPU revenue for Q4 is projected to be around $2.4 billion, reflecting a significant increase from Q3 [4].