Advanced Micro Devices, Inc. (NASDAQ:AMD) is a key player in AI stocks, with HSBC lowering its price target to $185.00. Revenue estimates remain above consensus, with a revised ASP for the MI355 chip. AMD develops semiconductors, processors, and GPUs for various applications, but some AI stocks may offer greater upside potential.

Analysts at HSBC revised their assumptions regarding AMD’s MI355 chip ASP from $25,000 to $23,000 per unit. Despite the adjustment, revenue estimates are still strong. The firm believes the street is underestimating AMD’s pricing potential, with major CSPs testing the MI400 rack solution expected to increase order visibility by 1Q26.

For investors interested in AI stocks, AMD offers potential but may not be the best short-term option. Analysts recommend exploring other undervalued AI stocks with less downside risk. To learn more about the best short-term AI stock, refer to a free report provided by the source. Check out 10 AI Stocks In The Spotlight For Investors and 10 AI Stocks on Wall Street’s Radar for more insights.

Read more at Yahoo Finance: HSBC Trims AMD Target Amid Revised Pricing Assumptions