HSBC Boosts AMD Price Target to $200 Amid AI Tech Advancements

HSBC has upgraded AMD to a Buy rating with a significantly raised price target from $100 to $200, citing optimism in the company's AI prospects. The financial institution expects AMD's AI revenue to reach $15.1 billion by fiscal 2026, surpassing current forecasts by 57%. AMD's MI350 and forthcoming MI400 rack architecture are expected to drive growth, with HSBC anticipating a positive outlook for the company.

HSBC has significantly upgraded its rating on Advanced Micro Devices (AMD) to 'Buy' and raised the price target from $100 to $200, citing strong optimism in the company's AI prospects [1]. The financial institution expects AMD's AI revenue to reach $15.1 billion by fiscal 2026, a 57% increase over current forecasts, driven by the company's recent unveiling of the MI350 series AI accelerators.

The upgrade is based on HSBC's belief that AMD's AI graphics processing units (GPUs) are competitive with Nvidia's Blackwell AI platform. The brokerage expects the MI350 chips to command significantly higher pricing, contributing to AMD's AI revenue growth. Additionally, HSBC anticipates that AMD's forthcoming MI400 rack architecture will further drive growth in the AI segment.

AMD's stock price has surged following the upgrade, reflecting investor confidence in the company's AI roadmap and its ability to challenge Nvidia's dominance in the AI chip market. The upgrade also comes as big tech firms such as Meta, Microsoft, and OpenAI have confirmed orders for AMD's latest GPUs, indicating growing adoption of the company's AI accelerators.

The upgrade highlights the increasing importance of AI in the tech industry and the potential for AMD to capture a significant share of the AI GPU market. While Nvidia still dominates the market, AMD's cost-effective GPUs and strong pricing power position it as a serious contender in the AI chip race.

References:
[1] https://m.economictimes.com/news/international/us/amd-stock-soars-as-hsbc-predicts-200-target-is-nvidias-ai-crown-in-jeopardy/articleshow/122389478.cms
[2] https://www.ainvest.com/news/hsbc-boosts-amd-price-target-200-ai-graphics-optimism-2507/