Advanced Micro Devices (AMD) saw its stock decline by 3.5% on Wednesday as the broader semiconductor market faced a downturn, with major players like Micron and SanDisk falling over 8%. This drop occurred despite multiple analysts raising their price targets ahead of AMD’s highly anticipated "Advancing AI" event next week.

UBS analyst Timothy Arcuri raised his price target for AMD to $700 from $670 while maintaining a Buy rating. He highlighted increasing demand for AI accelerators as a critical factor driving this adjustment. UBS predicts that AMD could generate between $40 billion and $50 billion in GPU revenue by 2027 if it secures three hyperscale customers.

The upcoming event is expected to focus on AMD's technology roadmap rather than financial forecasts. UBS is keenly interested in details regarding the MI450X accelerator and the MI500 GPU family, which is set to launch in 2027. Moreover, potential customers like Amazon and Anthropic are anticipated to be key for the MI450X platform, even though no formal announcements are expected during the event.

Rosenblatt analyst Kevin Cassidy also reaffirmed his Buy rating for AMD and raised the price target significantly to $665 from $490, calling AMD his firm's “top long idea.” He forecasts more than 70% year-over-year revenue growth for AMD’s EPYC server CPU, which is expected to capture the high-end server market as competitors face delays.

KeyBanc’s John Vinh echoed similar optimism, increasing his price target to $725 from $530. He expects server CPU unit growth of 15% to 20% in 2026 and over 50% in 2027, while projecting AI GPU revenue to hit $16.8 billion this year. Vinh noted that AMD's MI455 and Helios AI products are on track for a significant launch in the latter half of 2026.

Wall Street consensus remains a Strong Buy on AMD, with an average price target sitting at $538.19. Investors anticipate the company will report adjusted EPS of $1.61 for Q2 of 2026, representing a remarkable 235% increase year-over-year, with revenue expected to rise by 47% to reach $11.29 billion.

This material is informational only and should not be considered financial advice.