HSBC upgrades AMD to Buy, Shares Rise 4%

Advanced Micro Devices (NASDAQ: AMD) gained over 4% after HSBC upgraded the stock to Buy from Hold, setting a new price target of $200.

Key drivers behind the call:

  • AI Revenue Forecast Raised: HSBC now expects AMD’s AI revenue to reach $15.1 billion in FY2026 — a 57% jump above current market consensus.
  • Product Strength: The upgrade is driven by confidence in AMD’s MI350 series chips and upcoming MI400 rack architecture, expected in 2026.
  • Improved Pricing Power: HSBC believes AMD will benefit from strong pricing premiums in its data center AI chips, narrowing the gap with Nvidia.
  • Valuation Rerating Potential: Even after a 14% rally following its AI Day in June, HSBC sees more upside as the market underestimates AMD’s AI growth trajectory.

HSBC had previously flagged AMD’s lack of competitiveness in the AI GPU space. But with clearer product visibility and demand signals, the firm now sees a broader re-rating opportunity as investors reprice AMD’s role in the AI hardware race.