Veteran analyst drops massive call on AMD stock originally appeared on TheStreet.
A decade ago, few would have bet on Advanced Micro Devices (AMD) surviving, let alone challenging Nvidia’s (NVDA) AI chip dominance.
However, through relentless execution and smart tech bets, AMD’s not just in the fight, but also rattling the pecking order in the red-hot AI arms race.
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AMD’s big bet on bold designs and faster chips is paying off and then some, as AI reshapes everything from cloud servers to supercomputers.
That said, one heavyweight analyst note suggests that Wall Street is misreading AMD’s next big chapter, an upside that’s a lot bigger than investors think.
It’s easy to forget how close AMD came to disappearing altogether.
Back in 2015, the chipmaker was hanging by a thread, losing out to Intel’s stronger CPUs and watching Nvidia dominate GPUs.
Then Lisa Su stepped in as CEO that October, changing everything.
Su bet big on new ideas, approving a massive redesign of AMD’s CPUs called Zen. By 2017, Zen-based Ryzen chips were winning back PC buyers, and AMD’s EPYC server processors started chipping away at Intel’s data center business share.
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That turnaround set the stage for AMD’s breakthrough push into AI.
In 2020 and 2021, it rolled out its first real AI chips, the Instinct MI100 and MI200. Those helped propel AMD in the AI race, while still lagging behind Nvidia’s powerful GPUs.
Fast-forward to 2024, and AMD surprised one and all with its MI300 series. For the first time, AMD’s chips matched Nvidia’s in key AI tests.
Now, the new Instinct MI350 could be the real game-changer.
The MI350 is packed with next-generation technology, including 56 compute units, a massive 288 GB of high-speed memory, and 8 TB per second of bandwidth to handle AI workloads.
Also, it uses new data types, including the FP6 and FP4, that boost speed for training AI models and running them globally.
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Early tests show the MI350 can potentially match or even surpass Nvidia’s latest Blackwell B200 chips on some AI jobs.
Also, it can do that with 30% less money, which makes many big tech buyers think twice about sticking only with Nvidia.
Layer that with AMD’s open-source software platform, ROCm 7.0, and its smart chiplet design keeps costs down.
It’s clear that under Lisa Su, AMD’s comeback has been far from a fluke, and Nvidia’s grip on AI is no longer guaranteed.
HSBC just gave AMD’s AI ambitions a huge credibility bump, upgrading the stock to Buy, while doubling its price target to $200, up from $100.
That’s a massive 100% hike, and it’s all down to pricing power.
Analyst Frank Lee says AMD’s new MI350 data center GPUs are likely to be much stronger than expected on price, expecting them to sell for $25,000 on average, way up from the prior estimate of $15,000.
That premium alone could take AMD’s 2026 AI sales to $15.1 billion, 57% above current forecasts.
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AMD’s Instinct accelerators are also catching up with Nvidia’s Blackwell-based B200 chips on performance.
That shrinks a gap that seemed virtually impossible to close. Consequently, HSBC raised its 2025 and 2026 earnings estimates by 13% and 23%, respectively, on the back of this stronger pricing and faster adoption.
It doesn’t stop there.
The next major development is the MI400 series, AMD’s first full-rack AI server solution.
Slated to launch next year, the MI400 could go toe-to-toe with Nvidia’s next-gen Vera Rubin platform. HSBC says its standard data center-friendly design should help it win big with the big-ticket buyers looking to diversify their AI hardware suppliers.
Non-AI segments are also pushing AMD higher.
HSBC bumped its 2025 server shipment forecast by 5%, pointing to robust demand for general server and client chips.
All in all, with HSBC’s bold $200 target based on a 31x multiple of projected 2026 EPS, investors can now potentially see real fuel for AMD’s AI story.
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Veteran analyst drops massive call on AMD stock first appeared on TheStreet on Jul 11, 2025
This story was originally reported by TheStreet on Jul 11, 2025, where it first appeared.