AMD Stock Surges After HSBC Boosts Price Target to $200

AMD stock jumped 4% after HSBC doubled its price target to $200, citing the company's upcoming MI350 data center processor and MI400 rack architecture as potential catalysts. Goldman Sachs initiated coverage with a neutral rating and $140 price objective, citing valuation concerns and competition in AI hardware. Investors will be watching AMD's fiscal second-quarter results on Aug. 5 for gross margin trends and data center revenue growth.

Advanced Micro Devices (NASDAQ: AMD) stock experienced a significant upward movement on Thursday, climbing more than 4% following HSBC's upgrade to a buy rating and a substantial increase in its price target to $200. The brokerage firm cited the company's upcoming MI350 data center processor and the MI400 rack architecture as key drivers for the positive outlook [1].

HSBC's analysts highlighted the MI350 chips' competitive performance compared to Nvidia's (NVDA) Blackwell AI platform, with the average selling price for AMD's chips now expected to be around $25,000 per unit, a substantial increase from the previous estimate of $15,000. This pricing strength, along with the potential for higher adoption rates of AMD's CoWoS packaging and a shift towards high-end AI GPUs in 2025, is expected to support near-term momentum and earnings growth [1].

The firm also raised its 2026 AI revenue forecast to $15.1 billion, a 57% increase above consensus, driven by these factors. HSBC lifted its 2025 and 2026 earnings estimates by 13% and 23%, respectively, and noted that the launch of the MI400 series, AMD's first full-rack AI server solution, could be a significant catalyst beyond 2025 [1].

However, Goldman Sachs entered the picture with a neutral rating and a $140 price objective in its initiation report. The investment bank noted that while AMD's AI pipeline is promising, valuation concerns remain given the broader semiconductor cycle and intensifying competition in AI hardware [3].

Investors are now closely watching AMD's fiscal second-quarter results scheduled for Aug. 5. The market will be particularly focused on gross margin trends and data center revenue growth amid the increasing competition in AI hardware [3].

References:
[1] https://finance.yahoo.com/news/hsbc-upgrades-amd-ai-chip-145404249.html
[2] https://www.morningstar.com/news/marketwatch/20250710211/amds-stock-is-rallying-as-an-analyst-makes-his-case-for-a-40-gain-from-here
[3] https://finance.yahoo.com/news/amd-stock-jumps-hsbc-doubles-193433902.html