AMD Stock Jumps 4% After HSBC Raises Target to $200 Amid AI Chip Competition with Nvidia

AMD stock surged 4% to $144.16 after HSBC upgraded its rating to "Buy" and raised its target price to $200, citing AMD's advancing AI chip portfolio, particularly the MI300X and MI350 series, as a direct challenge to NVIDIA's dominance in the AI data center space. HSBC estimates AMD's AI GPU revenue to hit $151 billion by FY2026, 57% higher than the current market consensus.

Advanced Micro Devices (AMD) stock surged 4% to $144.16 on July 2, 2025, following a significant upgrade by HSBC analysts. The brokerage firm raised its rating on AMD to "Buy" and increased its price target to $200, citing the company's advancing AI chip portfolio, particularly the MI300X and MI350 series, as a direct challenge to NVIDIA's dominance in the AI data center space [1].

HSBC's upgrade reflects growing confidence in AMD's ability to command higher prices for its AI GPUs. The brokerage now estimates that the average selling price (ASP) of the MI350 series could reach $25,000 per unit, a substantial increase from its previous estimate of $15,000. This pricing power is expected to drive a significant revenue boost for AMD in 2026, with AI GPU revenue projected to hit $151 billion, 57% higher than the current market consensus [1].

The upgrade is also supported by AMD's strong performance in the AI chip market. The company's MI350 series GPUs are seen as comparable to NVIDIA's current Blackwell line, while the upcoming MI400 series is expected to challenge NVIDIA's upcoming Vera Rubin platform in 2026 [2]. This competitive positioning, along with AMD's open ecosystem strategy, has fueled investor optimism [2].

Technical indicators also suggest a bullish trend for AMD. Its 50-day moving average is approaching the 200-day average, hinting at a possible golden cross. Meanwhile, the relative strength index (RSI) remains just below overbought levels, supporting continued momentum [2].

However, AMD faces several risks, including supply chain constraints and competition from NVIDIA and Intel. TSMC's limited supply of CoWoS capacity could cap revenue growth, while NVIDIA's 20-year lead in AI software and Intel's Gaudi 3 chip pose significant challenges [3].

Despite these risks, AMD's AI chip momentum and strong fundamentals make it an attractive investment opportunity. The stock's 40% upside potential makes it a "Buy" for investors willing to bet on execution, although hedging is prudent to mitigate risks [3].

References:
[1] https://finance.yahoo.com/news/hsbc-upgrades-amd-ai-chip-145404249.html
[2] https://www.fxleaders.com/news/2025/07/11/amd-shares-jump-as-its-ai-chips-rival-nvidias-performance/
[3] https://www.ainvest.com/news/amd-ai-chip-momentum-catalyst-driven-bull-case-200-2507/