<div id="readability-page-1"><p>Advanced Micro Devices (AMD) and Arm Holdings (ARM) are gaining from agentic AI-led demand for CPUs (central processing units). Citing strong CPU demand, UBS analyst Timothy Arcuri raised his price target for AMD stock to $670 from $455 and reiterated a Buy rating. The analyst also increased his price target for ARM stock to $470 from $260, while maintaining a Buy rating.</p><h3>TipRanks' Prime Week Sale - 70% Off</h3>NVDS: built for a short position on NVDA <h2><strong>UBS Is Optimistic About AMD's Growth Prospects</strong></h2> <p>Arcuri said that he is &#34;incrementally more constructive&#34; on AMD amid growing adoption of CPU standalone racks, given favorable attributes such as core count, multithreading, and x86's solid software architecture for traditional software workloads that are increasingly part of agentic AI workloads.</p> <p>The 5-star analyst now expects x86 and ARM shares of the standalone segment of the market to be 60% and 40%, respectively. Arcuri thinks that AMD is well-positioned to win a larger share of the additional demand due to rival Intel's (INTC) roadmap and supply challenges. According to Arcuri, Intel's new 288 e-core Clearwater Forest CPU's performance is similar to the low-end version of AMD's p-core Venice platform.</p> <p>While the analyst believes that Intel still has opportunities in its in-house manufacturing business, its mid-term growth depends on improving its high core-count roadmap. Until then, Arcuri expects AMD to continue to gain market share. Consequently, the analyst revised AMD's CPU server revenue estimate for calendar years 2027 and 2028 from $21 billion and $27 billion to $23 billion and $29 billion, respectively, with the 2026 projection standing at $16 billion. Furthermore, Arcuri now expects AMD's revenue to reach $50 billion in 2030, up from the prior estimate of $41 billion.</p> <h2><strong>Here's Why Analysts Raised Price Targets for Arm Holdings Stock</strong></h2> <p>Meanwhile, Arcuri expects ARM-based chips to capture about a 70% share of the $20 million unit total addressable market (TAM) for head-node servers by 2030. After industry discussions and several expert calls, Arcuri is now slightly more optimistic about ARM's standalone CPU opportunity. Accordingly, the analyst modestly raised his 2030 estimate for ARM's AGI CPU business to nearly $14 billion from about $13 billion.</p> <p>Likewise, TD Cowen analyst Krish Sankar increased his price target for ARM stock to $475 from $265 and reiterated a Buy rating. The 5-star analyst noted that amid growing adoption of agentic AI, some workloads are shifting from GPUs (graphics processing units) to CPUs. As a result, CPUs are increasingly benefiting from the growth of AI.</p> <p>Sankar believes Arm Holdings' $15 billion AGI CPU revenue target for FY31 is achievable, although GPU-to-CPU usage rates and per-core pricing remain important factors. He is more optimistic about ARM's IP licensing business than about the Street's expectations for its chip business, arguing that some investors may simply be applying a 15% market share assumption to Nvidia's (NVDA) estimated $200 billion CPU TAM and overstating ARM's chip revenue potential.</p> <h2><strong>Wall Street's Take on AMD and ARM Stocks</strong></h2> <p>Currently, Wall Street has a Strong Buy consensus rating on Advanced Micro Devices stock, with the average AMD price target of $497.79 indicates 1.5% downside risk. Meanwhile, ARM scores a Moderate Buy consensus rating, with the average stock price target of $334.35 implies 3.4% downside risk.</p></div>

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<p>UBS raised price targets for AMD to $670 and ARM to $470, citing strong CPU demand driven by agentic AI. Analyst Timothy Arcuri highlighted AMD's competitive advantage over Intel and upgraded revenue forecasts, while also increasing optimism for ARM's share in the head-node server market. Other analysts echoed positive sentiments, noting a shift from GPUs to CPUs for certain AI workloads.</p>

- Advanced Micro Devices (AMD) and Arm Holdings (ARM) are experiencing increased demand for CPUs driven by agentic AI applications, prompting UBS analyst Timothy Arcuri to raise his price targets for both companies.  
- Arcuri forecasts AMD's revenue to reach $50 billion by 2030 and expects ARM to capture a 70% market share in head-node server chips.  
- Wall Street reflects a Strong Buy consensus for AMD, with an average price target suggesting slight downside risk, while ARM holds a Moderate Buy rating with a similar downside outlook.

UBS Raises AMD and ARM Stock Price Targets amid Agentic AI-Driven CPU Demand