AMD's AI conference will be held this week! UBS Group AG: CPU/GPU technology roadmap is the main focus, customer expansion expectations should not be too high.

AMD's annual flagship AI conference "Advancing AI 2026" will be held in San Francisco, USA, from July 22nd to 23rd. UBS Group AG released a forward-looking report stating that this event may focus more on showcasing technology rather than disclosing customer or financial information. It is expected that AMD will announce the latest progress in the data center CPU (including Venice, Verano) and GPU (MI450x and MI500) technology roadmap; embedded and gaming graphics card businesses will also provide updates on related information. UBS Group AG gave AMD a "buy" rating, raising the target price from $670 to $700. UBS Group AG stated in the report that the timing of AMD's Advancing AI event is before the release of Intel Corporation's financial report, approximately two weeks before AMD's own financial report. Investors' focus is on whether the company can expand its AI customer base beyond OpenAI and Meta, but UBS Group AG believes that the focus of this event will be on the release of the technology roadmap rather than significant adjustments to financial models. In terms of customers, UBS Group AG still believes that Amazon.com, Inc. will be a core customer for MI450x, and Anthropic may also be on the customer list, but the bank advises investors to lower their expectations for new customer announcements at this event. In addition to potential customer collaboration announcements, UBS Group AG expects AMD to comprehensively update its AI product line planning: disclose more details about MI450x Helios, the MI500 series, or possibly release information on the MI600 roadmap in advance, as well as potentially outlining deployment strategies for emerging distributed inference computing loads. In addition to AI acceleration chips, UBS Group AG expects AMD to give a more optimistic assessment of the server CPU market space. The last time AMD formally updated the overall potential market size (TAM) of server CPUs was in the first quarter of 2026, estimating that the market size could reach $120 billion by 2030, and industry data has significantly strengthened since then. UBS Group AG expects AMD to officially announce the mass production of the next-generation EPYC server processor codenamed "Venice," while also releasing more information about the Verano product. UBS Group AG believes that Verano will use Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR 2 nanometer process, and incorporate a SOCAMM 2 memory solution based on LPDDR. Considering the explosive growth in AI computational demand, AMD may disclose the new CPU roadmap after Verano. In terms of client business, as Intel Corporation accelerates the development of Panther Lake laptop chips based on the 18A process, UBS Group AG expects AMD to update its Ryzen notebook product line progress, further explain the transition of the Zen 6 architecture for desktop platforms to a 2 nanometer process, and announce the research and development progress of Ryzen AI Halo. Ryzen AI Halo is a product created by AMD to compete with NVIDIA Corporation's DGX Spark, targeting the rapidly growing personal AI device market. Due to the continuous better-than-expected boost in AI computing power and infrastructure demand, UBS Group AG has raised its overall performance expectations for AMD: for the 2026 fiscal year, revenue/diluted earnings per share have been raised from $50 billion/$7.61 to $51 billion/$7.69; for the 2027 fiscal year, revenue/diluted earnings per share have been raised from $79 billion/$13.47 to $83 billion/$14.63. GPU revenue expectations for the 2027 fiscal year have been raised from $38 billion to $41 billion; for the 2028 fiscal year, it has been raised from $54 billion to $61 billion.