Shares in Advanced Micro Devices (AMD) edged higher on Thursday after UBS lifted its price target for the US chipmaker, citing a more robust outlook for its graphics processing units (GPUs) ahead of a closely watched artificial intelligence event.
UBS analysts raised their target from $180 to $210, maintaining a 'buy' rating, according to a note seen by investors. The upgrade reflects expectations that AMD will capture a larger slice of the AI chip market, where it competes directly with Nvidia. The AI event, scheduled for next week, is expected to feature new GPU architectures tailored for data centres and enterprise AI workloads.
The news provided a modest boost to AMD stock in early US trading, with shares rising around 1.5% to $198. The broader Philadelphia Semiconductor Index also gained ground, up 0.8%, as investor sentiment towards AI-related stocks remained buoyant.
For UK investors and pension holders with exposure to US technology equities, the AMD upgrade underscores the continued dominance of AI as a driver of market performance. The chip sector has been a key contributor to the S&P 500's gains this year, and any positive signals from major players like AMD tend to ripple through global indices, including the FTSE 100's technology and mining stocks.
Analysts at UBS noted that AMD's GPU roadmap looks increasingly competitive, particularly as hyperscale cloud providers ramp up spending on AI infrastructure. However, they cautioned that execution risks remain, and Nvidia still holds a commanding market share. The event next week will be a critical test of AMD's ability to convince investors and customers of its long-term AI strategy.