--- title: "Intelligent AI ignites demand for independent CPU racks! UBS significantly raises target prices for AMD and Arm, Intel's roadmap faces challenges" type: "News" locale: "en" url: "https://longbridge.com/en/news/290765523.md" description: "UBS has significantly raised the target prices for AMD and Arm due to the demand for independent CPU racks driven by AI. The target price for AMD has been raised to $670, and for Arm to $470. UBS believes that AMD has advantages in core count and the x86 ecosystem, and is expected to capture a large portion of the new market share; Intel's mid-term performance will depend on improvements in its roadmap" datetime: "2026-06-25T02:34:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290765523.md) - [en](https://longbridge.com/en/news/290765523.md) - [zh-HK](https://longbridge.com/zh-HK/news/290765523.md) --- # Intelligent AI ignites demand for independent CPU racks! UBS significantly raises target prices for AMD and Arm, Intel's roadmap faces challenges According to the Zhitong Finance APP, UBS Group stated that as agentic AI continues to accelerate, both AMD (AMD.US) and ARM (ARM.US) are expected to benefit from the higher demand for independent CPU racks. Intel (INTC.US) can also play a role with its x86 chips, but the mid-term upside depends on improvements in its high core count and performance roadmap. In the x86 processor space, AMD is Intel's main competitor. The UBS analyst team led by Timothy Arcuri stated in an investor report on Wednesday, "As independent CPU racks become increasingly favored, our outlook on AMD is gradually becoming more positive, as it has advantages in core count and multithreading, and x86 has a long-standing and robust software ecosystem for traditional software workloads, which are increasingly becoming part of agentic AI workloads." "We now assume a market share division of 60% for x86 and 40% for ARM in the independent chip segment, and given Intel's roadmap and supply challenges, we believe AMD is well-positioned to capture a significant portion of this new demand." **UBS has significantly raised AMD's target price from $455 to $670.** The firm also raised its CPU revenue expectations for the fiscal year 2027 from $21 billion to $23 billion, and for 2028 from $27 billion to $29 billion. **Meanwhile, UBS has significantly raised Arm's target price from $260 to $470.** "We maintain our previous view that by the fiscal year 2030, ARM architecture will hold about 70% of the total addressable market (TAM) of approximately 20 million nodes—where we see the real debate among investors is regarding the revenue potential of ARM's independent CPUs," Arcuri added. The bank stated, "After a series of expert conference calls and industry discussions, we have become slightly more optimistic about its independent CPU prospects and have slightly raised the revenue expectations for ARM's internal CPUs in the fiscal year 2030 from about $13 billion to about $14 billion. ARM's core competitiveness lies in latency and efficiency—which aligns very well with the needs of hyperscalers; however, current limitations in core count/throughput will restrict the use of ARM's first-generation general artificial intelligence in independent AI racks, as workloads for such applications need to scale to more cores on a single machine as much as possible." In addition to ARM's opportunities in the independent CPU space, UBS found that ARM's royalty portion in node applications is also expected to increase "We expect that driven by higher core counts and an increase in single-core licensing fees, the licensing fee rate per device will rise (in our bullish scenario, the latter could increase by more than 2 times or even 3.5 times)," Akuri noted ### Related Stocks - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [04335.HK](https://longbridge.com/en/quote/04335.HK.md) - [ARM.US](https://longbridge.com/en/quote/ARM.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [ARMU.US](https://longbridge.com/en/quote/ARMU.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [ARMG.US](https://longbridge.com/en/quote/ARMG.US.md) - [AMDD.US](https://longbridge.com/en/quote/AMDD.US.md) - [INTW.US](https://longbridge.com/en/quote/INTW.US.md) - [ARMW.US](https://longbridge.com/en/quote/ARMW.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [AMDG.US](https://longbridge.com/en/quote/AMDG.US.md) - [DAMD.US](https://longbridge.com/en/quote/DAMD.US.md) - [AMDY.US](https://longbridge.com/en/quote/AMDY.US.md) - [AMDW.US](https://longbridge.com/en/quote/AMDW.US.md) - [LINT.US](https://longbridge.com/en/quote/LINT.US.md) - [INYY.US](https://longbridge.com/en/quote/INYY.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [UBS.US](https://longbridge.com/en/quote/UBS.US.md) ## Related News & Research - [Intel Advances Next Generation 18A-P Chip to Risk Production. 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