July 10 – Advanced Micro Devices (NASDAQ:AMD) stock climbed more than 4% on Thursday after HSBC raised its rating to buy and doubled its price target to 200, according to a recent client note.
Analyst Frank Lee argued that AMD’s upcoming MI350 data?center processor could command a premium over expectations, narrowing the gap with rival Nvidia (NVDA) Blackwell chips. Lee also highlighted the forthcoming MI400 rack architecture as another potential catalyst.
Despite the upbeat outlook from HSBC, Goldman Sachs entered with a neutral rating and a $140 price objective in its own initiation report. Goldman noted that while AMD’s AI pipeline is promising, valuation concerns remain given the broader semiconductor cycle.
AMD is scheduled to report fiscal second?quarter results on Aug. 5. Investors will watch for gross margin trends and data?center revenue growth amid intensifying competition in AI hardware.
Trading volume spiked as the upgrade landed, underscoring market appetite for AMD’s AI ambitions. With eyes now on the earnings release, the question is whether AMD can translate its AI advancements into sustainable revenue gains.
This article first appeared on GuruFocus.