HSBC Doubles AMD Target Price to $200 on AI GPU Strength

HSBC has recently expressed a bullish outlook on Advanced Micro Devices (AMD), upgrading its rating for the semiconductor company from "hold" to "buy" and doubling its target price to 200 dollars. This optimistic stance is primarily driven by the strong performance and pricing power of AMD's AI GPU product line, particularly the new MI350 series.

The bank's analysts highlighted that the MI350 series, especially the MI355 chip, is expected to command a significant price premium over competing products from Nvidia. The average selling price for the MI355 chip is projected to be around 25,000 dollars per unit, a substantial increase from the previous estimate of 15,000 dollars. This price increase is anticipated to significantly boost AMD's AI business revenue for the 2026 fiscal year, potentially leading to a market revaluation.

HSBC's optimism is further bolstered by the compatibility of the MI350 series with existing data centers, which is expected to help AMD gain market share in the AI GPU sector, currently dominated by Nvidia. The bank also noted that AMD's commitment to an open ecosystem, as emphasized by the company's CEO during a recent AI event, will support all major frameworks and provide cost-effective, easy-to-deploy AI hardware solutions.

Looking ahead, HSBC is closely watching the upcoming MI400 series, which is expected to further drive AI revenue growth. The bank believes that AMD's strong entry into the AI chip market is just beginning and that Wall Street will soon recognize the company's potential in this rapidly growing sector.