NEW YORK, June 24, 2026, 18:05 EDT
- Advanced Micro Devices, Inc. (NASDAQ:AMD) ended regular trading down 0.02% at $519.74, before jumping 3.45% to $537.69 in after-hours trading.
- UBS lifted its price target on AMD to $670 from $455, a jump of about 29% over where shares closed.
- The new target suggests roughly $1.1 trillion in equity value for AMD’s current share count. That’s about $248 billion more than where shares finished on Wednesday, according to Reuters calculations using market-cap data.
- Qualcomm Inc. (NASDAQ:QCOM) is aiming for $15 billion in data-center chip sales by 2029 and listed Microsoft Corp. (NASDAQ:MSFT) and Meta Platforms Inc. (NASDAQ:META) among its AI-chip customers.
Advanced Micro Devices, Inc. (NASDAQ:AMD) finished Wednesday little changed. UBS, which had one of the highest targets on AMD, reset its view, but the stock barely moved. Investors didn’t rush to buy on another AI-chip call.
AMD slipped 11 cents to end the day at $519.74, moving between $503.50 and $524.96. In after-hours trading, shares jumped 3.45% to $537.69 with 2.03 million shares changing hands. Volume during normal hours was 25.76 million shares—about 68% of the 65-day average.
UBS bumped its price target on AMD up to $670 from $455 while maintaining its Buy rating, according to Investing.com. The new target is around 29% higher than AMD’s last close. At the close, AMD had a $857.6 billion market cap. UBS’s target price would push that close to $1.1 trillion, assuming share count stays the same.
The main bull case on the stock puts about $248 billion of upside into play. But the average analyst target is muted—MarketScreener lists 51 analysts at Buy, yet their targets land at $500.40, which is 3.74% under the most recent close shown there.
The numbers are stretched. AMD trades at about 21 times its annualized Q1 revenue, and about 37 times annualized Q1 data-center sales, based on the March quarter and where shares closed Wednesday. That doesn’t leave much buffer if server CPUs, accelerators or AI racks come up short.
AMD brought in $10.3 billion in first-quarter revenue, with data-center sales at $5.8 billion, a 57% jump over last year. For the second quarter, AMD sees revenue at roughly $11.2 billion, give or take $300 million, and expects a non-GAAP gross margin near 56%.
AMD CEO Lisa Su said in May that “Data Center” is now the main engine for the company’s revenue and profit growth. She told analysts demand for high-performance CPUs and accelerators is picking up as inferencing and agentic AI expand. SEC
AMD holders now face a market crowded with new rivals chasing actual orders. Qualcomm Inc. (NASDAQ:QCOM) on Wednesday said it’s looking for $15 billion in data center chip sales by 2029, targeting $5 billion of that in fiscal 2027. Microsoft and Meta are planning to use Qualcomm’s AI chips, according to the company. Custom-chip revenue tied to two hyperscalers should begin before year-end.
Qualcomm’s data-center head Tony Pialis said, “I have not had to push my way into hyperscale customers; they’ve been pulling us in.” Pialis did not disclose the names of any custom-chip clients. Reuters
That’s key for AMD since UBS’s price target assumes investors reward AMD for more server CPU share and AI workload traction, beyond just GPUs. But with more competition in inference chips, CPUs, and custom silicon, the stock’s multiple might stall even if sales keep climbing.
Tech stayed weak Wednesday, dragging the Nasdaq Composite down 0.43% and the S&P 500 off by 0.10%. Worries over valuations hit the sector. Reuters said fears of debt-fueled spending by hyperscalers and a hawkish Fed wiped out over $1 trillion from the Nasdaq 100 this week.
Michael Monaghan, partner and portfolio manager at Founder ETFs, said investors continue to favor the beneficiaries of the spending, while stocks of the companies making the outlays have come under pressure.
Philadelphia SE Semiconductor index dropped 7.9% on Tuesday as chipmakers like Advanced Micro Devices, Intel Corp. (NASDAQ:INTC), and Marvell Technology Inc. (NASDAQ:MRVL) each gave up between 5.8% and 9.4%. That pullback started the day before. Thomas Martin, senior portfolio manager at Globalt, said all the recent AI news “raises questions about all the spending.” Reuters
