Advanced Micro Devices Inc. (NASDAQ:AMD) is showing significant relative strength, jumping into the top tier of Benzinga Edge’s momentum score, rising from 89.98 to 91.48 week-on-week.
What Does Momentum Ranking Entail?
This technical momentum—which measures the stock’s relative strength based on price movement patterns and volatility over multiple timeframes—aligns with a highly bullish outlook from UBS.
The firm maintained a $310 price target on the stock, representing an approximate 54% upside from Friday’s close of $201.99.
Benzinga Edge’s Stock Rankings data shows the stock is in an upward price trend across short, medium, and long-term timeframes—spanning from the last couple of months to the past year.
Beyond AI accelerators, UBS highlights that AMD remains very bullish on its CPU business, seeing upside to a long-term financial model of 18% market compound annual growth rate (CAGR) from both units and average selling prices.
Furthermore, the company boasts a growth ranking in the 97.53th percentile, measuring its combined historical expansion in earnings and revenue.
Gigawatt-Scale AI Deals and Revenue Upside
The optimism from UBS is fueled by increased confidence in AMD’s revenue upside for the calendar year 2027. Timothy Acuri highlighted the potential for a “third GW-scale customer,” suggesting Microsoft Corp. (NASDAQ:MSFT) is the most likely candidate to join existing mega-deals with OpenAI and Meta Platforms Inc. (NASDAQ:META).
UBS views AMD’s warrant and equity structures for these large language model builders as unique and accretive, serving as a vehicle to dramatically accelerate share gains in the broader AI accelerator market.
A Second-Half 2026 Story
Despite the immediate price momentum, UBS analysts maintain that AMD is primarily a “2H:26 story.” Significant catalysts are expected when MI450 shipments related to the OpenAI deal commence, followed shortly thereafter by Meta shipments.
AMD Underperforms In 2026
AMD has declined 5.68% year-to-date, while the Nasdaq 100 index fell 8.23% during the same period. It was higher by 26.67% in the last six months and 89.40% over the year.
The stock closed Friday 0.87% lower at $201.99 apiece, and it was higher by 1.52% in premarket on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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