AMD's annual flagship AI conference, "Advancing AI 2026," is scheduled for July 22-23 in San Francisco.
UBS has issued a preview report, suggesting the event will likely emphasize technological showcases over announcements concerning new clients or financial updates.
The firm anticipates Advanced Micro Devices (AMD.US) will reveal the latest progress on its data center CPU roadmap, including Venice and Verano, and its GPU roadmap, featuring the MI450x and MI500 series.
Updates on the embedded and gaming graphics businesses are also expected.
UBS maintains a "Buy" rating on AMD, raising its price target from $670 to $700.
Event Focus and Timing
The UBS report notes that AMD's Advancing AI event precedes Intel's earnings report and occurs roughly two weeks before AMD's own financial results.
While investor focus centers on whether AMD can expand its AI client base beyond entities like OpenAI and Meta, UBS believes the event's core will be the release of technology roadmaps rather than significant revisions to financial models.
Client and Product Expectations
Regarding potential clients, UBS continues to view Amazon as a likely core customer for the MI450x, with Anthropic also a possible addition to the client list.
However, the firm advises investors to moderate expectations for announcements of major new client partnerships at this event.
Beyond client news, UBS expects a comprehensive update on AMD's AI product portfolio.
This may include more details on the MI450x Helios and MI500 series, potentially an early glimpse of the MI600 roadmap, and a possible strategy outline for emerging distributed inference workloads.
Server CPU Market Outlook
Apart from AI accelerators, UBS forecasts that AMD will provide a more optimistic assessment of the server CPU total addressable market.
AMD's last formal TAM update was during its Q1 2026 earnings, projecting a $120 billion market by 2030, and industry data has strengthened significantly since then.
UBS expects AMD to announce the formal start of volume production for its next-generation EPYC server processor, codenamed "Venice," alongside more information on the Verano product.
The firm anticipates Verano will utilize TSMC's 2-nanometer process and incorporate an LPDDR-based SOCAMM2 memory solution.
Given the explosive growth in compute demand from agentic AI, AMD might also disclose its CPU roadmap plans for the generation following Verano.
Client Business Updates
In the client business segment, with Intel advancing its Panther Lake laptop chips based on the 18A process, UBS expects AMD to provide updates on its Ryzen notebook product line.
The company is also likely to further detail plans for transitioning its desktop Zen 6 architecture to a 2nm process and announce development progress on Ryzen AI Halo.
Ryzen AI Halo is AMD's product aimed at competing with Nvidia's DGX Spark, targeting the rapidly growing personal AI device market.
Financial Forecast Revisions
Driven by sustained stronger-than-expected demand for AI compute and infrastructure, UBS has raised its overall performance forecasts for AMD.
For fiscal 2026, revenue/diluted EPS estimates are increased from $50 billion/$7.61 to $51 billion/$7.69.
For fiscal 2027, revenue/diluted EPS estimates are raised from $79 billion/$13.47 to $83 billion/$14.63.
The GPU revenue forecast for fiscal 2027 is lifted from $38 billion to $41 billion, and for fiscal 2028, it is increased from $54 billion to $61 billion.
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