Advanced Micro Devices Inc. (NASDAQ:AMD) is showing significant momentum as it rises among the top stocks on Benzinga Edge’s Momentum Score, up from 89.98 to 91.48 week-over-week.
What does momentum ranking mean?
This technical momentum, which measures the relative strength of the stock based on price movement patterns and volatility over multiple time frames, aligns with a very bullish outlook from UBS.
The firm maintained a $310 price target on the stock, representing an upside of about 54% from Friday’s close of $201.99.
Reliable data on Benzinga Edge Stock Rankings indicate that the stock is in an upward price trend in the short, medium and long term, ranging from the last few months to the past year.
Beyond AI accelerators, UBS emphasizes that AMD remains very optimistic on its CPU business, with an assessment of the long-term financial model according to which the compound annual growth rate (CAGR) of the market would be 18% for both the units and the average selling price.
Additionally, the company boasts a growth ranking in the 97.53rd percentile, meaning it measures its combined historical expansion in terms of profits and revenue.
Multi-gigawatt deals and revenue growth potential
UBS’s optimism is fueled by increased confidence in AMD’s revenue upside potential for calendar year 2027. Timothy Acuri highlighted the potential for a “third gigawatt-scale customer,” suggesting that Microsoft Corp. (NASDAQ:MSFT) would be the most likely candidate to strike a mega-deal after those already established with OpenAI et Meta Platforms Inc. (NASDAQ:META).
UBS considers AMD’s warrant and equity structures for these large language model builders to be unique and beneficial in significantly accelerating earnings per share in the broader AI accelerator market.
A story for the second half of 2026
Despite the immediate price momentum, UBS analysts emphasize that AMD is primarily a “story for the 2nd half of 2026.” Significant catalysts are expected when MI450 shipments linked to the OpenAI deal begin, followed shortly thereafter by Meta shipments.
AMD underperformance in 2026
So far, AMD has lost 5.68% since the start of the year, while the Nasdaq 100 index has fallen 8.23% during the same period. The value had increased by 26.67% over the last six months and 89.40% over the year.
The stock closed Friday down 0.87% at $201.99, and was up 1.52% in trading before the market opened Monday.
Warning :Â This content was partially produced using AI tools, then reviewed and published by Benzinga editors.
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