Advanced Micro Devices, Inc. (AMD) is considered one of the best tech stocks to buy long term. HSBC recently reiterated a ‘Buy’ rating on AMD but lowered the price target to $185 from $200 due to concerns about the average selling price of the M1355 chip, estimating it at $23,000 per unit.

The reduced average selling price prompted HSBC to lower its 2026 AI GPU revenue estimate for AMD from $15.1 billion to $13.9 billion, which is still 20% above consensus estimates. Despite this, HSBC believes Wall Street is underestimating AMD’s AI GPU business potential.

HSBC anticipates that AMD will benefit from major cloud service providers like Meta, Microsoft, and Oracle testing its M1400 rack solution, diversifying the company’s revenue base. AMD is a semiconductor company specializing in high-performance computing and visualization products used in various markets, including AI and cloud computing.

While AMD shows promise as an investment, other AI stocks may offer greater upside potential with less downside risk. For those seeking undervalued AI stocks benefiting from current economic trends, consider exploring other investment opportunities beyond AMD.

Read more at Yahoo Finance: Wall Street Underestimating Advanced Micro Devices Inc. (AMD)’s AI GPU Business