“`html
HSBC Doubles Price Target on AMD
HSBC analyst Frank Lee has increased the price target for Advanced Micro Devices (NASDAQ: AMD) to $200, indicating a potential 37% upside from current levels. The investment bank believes AMD’s new AI chips are powerful enough to significantly close the gap with Nvidia in the AI accelerator market.
Growth Projections and Revenue Forecast
AMD’s new MI350X and MI355X data center GPUs are reported to be three times more powerful than the previous MI300X models, with a claim of outperforming Nvidia’s Blackwell GPUs. These GPUs feature 288 GB of high-bandwidth memory, leading HSBC to forecast AMD’s AI GPU revenue could reach $15 billion by 2026, exceeding Wall Street’s consensus estimate of $9.6 billion. AMD’s data center GPU revenue was over $5 billion at the end of 2024, suggesting the potential to triple this figure within two years.
Earnings Growth Expectations
Consensus estimates predict a 17% increase in AMD’s earnings this year and a 47% rise in 2026, possibly reaching $5.71 per share. Given the anticipated growth in data center revenue and strong market positioning, analysts believe AMD could hit its earnings targets and capitalize on its stock’s discounted trading ratio.
“`
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
