AMD Stock Soars 6.78% on HSBC Upgrade and Price Target Boost

Advanced Micro Devices (AMD) stock rose 6.78% following HSBC's upgrade to "Buy" and a price target increase to $200. Analysts' one-year price targets average $137.79, suggesting a 5.89% potential downside. GuruFocus estimates a projected GF Value of $167.94, indicating a 14.7% upside potential.

Advanced Micro Devices (AMD) stock rose by 6.78% following a significant upgrade from HSBC analyst Frank Lee, who changed the rating from "Hold" to "Buy" and raised the price target to $200. This upgrade reflects HSBC's bullish outlook on AMD's long-term growth potential, particularly in the GPU and CPU markets [1].

Lee's upgrade comes after AMD's recent advancements in AI technology and improved market performance. The analyst cited the company's AI deal with Saudi Arabia and the easing of tariff tensions as key factors in his previous upgrade from "Sell" to "Hold" in May [1]. The upgrade to "Buy" is likely in anticipation of AMD's upcoming second-quarter results, with analysts expecting adjusted earnings per share (EPS) of $0.49 on revenues of $7.41 billion [1].

The bullish sentiment is also driven by AMD's strong performance in the AI chip market. HSBC is now optimistic about AMD's MI300X and MI350 AI chips, which are gaining traction against NVIDIA's GPUs. Big names like Meta, Microsoft, and OpenAI have adopted AMD's AI accelerators, fueling growth in its AI business [2]. HSBC estimates that AI GPU revenue could hit $151 billion by FY2026, far above the current market consensus of $96 billion [2].

Other analysts have also raised their price targets for AMD stock. Citi analyst Christopher Danely lifted his target to $145 from $120, while Mizuho Securities analyst Vijay Rakesh raised his target to $152 from $130 [1]. Despite the overall bullish sentiment, analysts remain divided on AMD's long-term outlook, with a Moderate Buy consensus rating on TipRanks [1].

The average Advanced Micro Devices price target of $137.79 implies a 5.89% potential downside from current levels, while GuruFocus estimates a projected GF Value of $167.94, indicating a 14.7% upside potential [1]. Year-to-date, AMD stock has gained 14.6%, reflecting the growing confidence in the company's AI vision [1].

References:
[1] https://www.tipranks.com/news/amd-upgraded-to-buy-by-hsbc-with-street-high-price-target-stock-rises
[2] https://economictimes.indiatimes.com/news/international/us/amd-stock-soars-as-hsbc-predicts-200-target-is-nvidias-ai-crown-in-jeopardy/articleshow/122389478.cms