UBS Maintains Bullish Stance on AMD Despite AI Chip Export Concerns

Advanced Micro Devices shares fell nearly 3% Tuesday, extending a 20% monthly decline amid reports of potential U.S. restrictions on AI chip exports to China. The proposed caps could limit Chinese firms to 75,000 units each of Nvidia's H200 and AMD's MI325 accelerators combined.

UBS analyst Timothy Arcuri reaffirmed his Buy rating while trimming AMD's price target to $310 from $330, still implying 56% upside. The adjustment reflects near-term gaming segment weakness but reinforces confidence in AMD's revenue trajectory through 2027. Arcuri anticipates AMD securing a third major AI client beyond existing partnerships with Meta and OpenAI.

The bank projects AMD's CPU division will drive long-term growth, with material revenue impact from MI450 shipments expected by late 2026. The Meta Platforms multiyear agreement provides additional visibility, though near-term sentiment remains tethered to geopolitical developments in semiconductor trade.