Advanced Micro Devices (AMD) Stock: HSBC Doubles Price Target as AI Chips Challenge Nvidia

TLDR

Table of Contents

HSBC doubled AMD’s price target from $100 to $200 after upgrading to “Buy” rating
AMD’s new MI350 Series GPUs can compete directly with Nvidia’s Blackwell chips
Stock surged 57% in last three months and up 21% year-to-date in 2025
Q1 earnings beat expectations with $7.4 billion revenue, up 36% year-over-year
Major clients like OpenAI, Meta, and Microsoft committed to AMD’s latest chips

AMD stock jumped nearly 4.2% on July 10 after HSBC analysts made a bold move. They upgraded the semiconductor company from “Hold” to “Buy” and doubled their price target to $200.

The upgrade came after analysts got their hands on AMD’s latest Instinct MI350 Series GPUs. These new chips impressed HSBC enough to declare them capable of competing with Nvidia’s powerful Blackwell lineup.

“With the recent launch of the MI350 series, we were pleasantly surprised with the performance upgrades which imply that the MI350 series can compete with Nvidia latest-gen HGX B200 AI GPU,” HSBC analysts wrote. The improved performance justifies much higher pricing than initially expected.

This represents a major shift for AMD, which has struggled to grab market share in the AI chip space. While Nvidia dominated the headlines and stock performance, AMD quietly worked on its comeback.

The company unveiled its MI350 Series GPUs last month as part of a broader push into AI hardware. But AMD didn’t stop there – they also previewed Helios, a next-generation rack-scale system built around upcoming MI400 Series GPUs.

Strong Financial Performance Backs Up The Hype

AMD’s first-quarter earnings report on May 6 provided solid evidence of the company’s momentum. Revenue hit $7.4 billion, marking a robust 36% year-over-year jump and beating analyst forecasts of $7.1 billion.

Adjusted earnings per share came in at $0.96, up 55% from the same quarter last year. This easily surpassed the $0.93 consensus estimate from Wall Street.

The Data Center segment drove much of this growth, bringing in $3.7 billion in revenue – a 57% year-over-year surge. AMD credited rising demand for its high-performance Epyc processors and Instinct GPUs.

The Client and Gaming segment also performed well, with revenue climbing 28% year-over-year to $2.9 billion. The Client division saw revenue surge 68% from the prior year thanks to strong demand for AMD’s latest PC and laptop chips.

Gaming revenue did fall 30% annually as console chip demand softened. But this weakness was offset by strength in other areas.

CEO Dr. Lisa Su expressed confidence in the company’s direction. “Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio,” she said.

Wall Street Sentiment Shifts

The HSBC upgrade reflects changing sentiment on Wall Street. AMD now carries a consensus rating of “Moderate Buy” as optimism builds around its AI-focused strategy.

Of 43 analysts covering the stock, 28 recommend a “Strong Buy” rating. Two suggest “Moderate Buy” while 13 remain neutral with “Hold” ratings.

HSBC’s $200 price target represents the highest on Wall Street. This suggests shares could rally as much as 37% from current levels.

The stock has already shown impressive momentum in 2025. After falling 20% over the past year, AMD has roared back with a 21% gain year-to-date.

The real excitement came in the last three months, when shares skyrocketed 57%. This surge was fueled by renewed investor optimism and bullish analyst upgrades.

Major Clients Signal Confidence

Perhaps most telling is the client response to AMD’s new chips. Major players like OpenAI, Meta Platforms, and Microsoft have committed to AMD’s latest hardware.

This represents a shift that could reshape the AI hardware landscape. These companies previously relied heavily on Nvidia’s chips for their AI workloads.

HSBC believes AMD could see even more upside next year with the MI400 series launch. This upcoming lineup is positioned as a serious competitor to Nvidia’s Vera Rubin platform, due in the second half of 2026.

From a technical perspective, AMD shares recently broke out of a flag pattern with surging volume. Momentum indicators like RSI and moving averages are flashing bullish signs.

The first major resistance level sits near $175, tied to last year’s highs. If bulls push through, $215 could come into view as the next target.

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