HSBC Upgrades AMD, Shares Gain 4%

HSBC upgraded Advanced Micro Devices (NASDAQ:AMD) to Buy from Hold, setting a new price target of $200 as optimism builds around the company’s AI product roadmap and revenue potential. As a result, the company’s shares rose more than 4% today.

The firm sees a significant upside in AMD’s FY2026 AI revenue, driven by stronger-than-expected pricing for its newly launched MI350 series chips.

Back in January, HSBC had flagged concerns over AMD’s competitiveness in the AI GPU space, but recent developments have flipped that view. The latest forecast now anticipates $15.1 billion in AI revenue for FY2026—roughly 57% above the current market consensus of $9.6 billion. That sharp revision is based on AMD commanding a higher pricing premium than initially expected.

Further boosting confidence is the upcoming MI400 rack architecture, set to debut in 2026. While still early to model financial impact, HSBC believes the long-term potential could further bolster AMD’s AI positioning.

Despite a recent 14% rally in AMD shares following its AI Day in June, HSBC argues that the market has yet to fully price in the coming wave of AI-driven growth. The firm expects this momentum to drive a broader re-rating for the stock, with significant room for upside from current levels.