HSBC has increased its price target on AMD stock, citing the potential of AMD’s new AI chips to help it catch up with Nvidia. Analysts expect significant earnings growth next year, which could drive the stock higher.

AMD’s latest data center GPUs are three times more powerful than previous models, outperforming Nvidia’s offerings. The company has secured partnerships with major AI firms and priced its chips competitively to gain market share from Nvidia.

Consensus estimates project a 47% increase in AMD’s earnings in 2026, driven by a surge in data center GPU revenue. With a price-to-earnings ratio of 39, AMD’s stock could reach $200, presenting a potential investment opportunity for growth.

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Read more at Nasdaq: 1 Artificial Intelligence (AI) Stock to Buy Before It Jumps 37%, According to a Wall Street Analyst