HSBC has doubled the price target for AMD stock from $100 to $200 and upgraded the rating from “Hold” to “Buy.” This reassessment is largely due to the strong expectation that AMD’s new AI GPU series Instinct MI350 will achieve a significant breakthrough, competing both in price and performance with Nvidia’s flagship model, the HGX B200.
Progress at AMD and Market Reaction
HSBC forecasts AI revenues of around $15.1 billion for the fiscal year 2026, which is about 57% above the previous consensus estimate of $9.6 billion. This revenue potential is driven by a higher than expected price premium on the MI350 series.
The bank sees AMD as a serious competitor to Nvidia in the AI chip sector and expects this development to lead to a significant reassessment of the company. The stock currently has a high price-to-earnings (P/E) ratio of around 104, reflecting high growth expectations.
Market Observation and Analyst Assessments
In summary, the following picture emerges:
- HSBC Price Target: Doubling from $100 to $200
- Current Stock Price: About $144 (as of July 2025)
- Forecasted AI Revenues: $15.1 billion for fiscal year 2026 (57% above consensus)
- Reason for Optimism: New GPU series Instinct MI350 competitive with Nvidia HGX B200
- Assessment: Serious competition to Nvidia in the AI sector
This assessment has already shown positive impacts: AMD’s stock rose about 3.6% in pre-market trading following the rating upgrade. Investors are excited about the prospect of strong growth due to the new AI chip.