HSBC just handed Advanced Micro Devices (NASDAQ:AMD) a major vote of confidence, upgrading the chipmaker to Buy from Hold and doubling its price target from $100 to a hefty $200, driven by the bank’s bullish view on AMD’s surging AI GPU pipeline.
The stock jumped nearly 4% in early trading after HSBC analyst Frank Lee flagged the strong pricing power of AMD’s new MI350 series, which now commands a significant premium over Nvidia’s rival Blackwell B200 chips.
According to Lee, the average selling price for the MI355 could hit $25,000 per unit, up from a previous estimate of $15,000a dramatic increase that could unlock meaningful upside to AMD’s FY26 AI revenue and drive a re-rating that the market still hasn’t fully priced in despite a 14% pop since the company’s AI Day.
HSBC sees this premium pricing, plus the MI350’s plug-and-play compatibility with existing data centers, as a major edge that could help AMD claw back share from Nvidia’s near-monopoly in the AI GPU race.
CEO Lisa Su, speaking at AMD’s AI event last month, doubled down on the company’s commitment to an open ecosystem, promising to back every major framework and deliver full-stack solutions that make deploying AI hardware easier and more cost-effective.
The next catalyst on HSBC’s radar? The upcoming MI400 series, which Lee says could push AI revenues even higher. Put together, the bank believes AMD’s aggressive push into AI silicon is just getting startedand Wall Street’s about to catch up.
This article first appeared on GuruFocus.