Shares in Advanced Micro Devices (AMD) are down nearly 3% on Tuesday and over 20% in the past 30 days. Despite that dip, analysts at UBS are suggesting the stock is a buy, presenting an interesting opportunity for investors. AMD stock’s recent dip follows a report that the U.S. is considering new limits on advanced AI chip exports to China.
Per a recent Bloomberg report, U.S. officials are discussing per-customer caps on advanced AI chip sales to Chinese firms. Under the proposal, each Chinese company could be limited to 75,000 of Nvidia’s H200 chips, with shipments of AMD’s MI325 chips also counting toward that same cap. The report raised fresh concerns about AI chip demand from China, sending both AMD and NVDA lower.
However, top UBS analyst Timothy Arcuri has reiterated a Buy rating on the stock.
However, he lowered his price target to $310 from $330, citing weakness in the gaming business. The new price target still signals 56% upside from current levels. The analyst said he is more confident about revenue growth through 2027. Furthermore, Arcuri noted that AMD could land a third gigawatt-scale AI customer beyond its deals with OpenAI and Meta Platforms.
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UBS remains bullish on AMD’s CPU business and sees upside to its long-term growth outlook. However, UBS added that the bigger revenue impact may come in the second half of 2026 as MI450 shipments ramp. AMD’s multiyear deal with Meta Platforms was also a green flag for the stock earlier this month. At press time, there is a general consensus among analysts about AMD’s growth prospects, with Stifel, BofA, and Benchmark maintaining high price targets. Analysts’ targets range from $200 to $325.