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Investing.com - HSBC has lowered its price target on AMD (NASDAQ:AMD) to $185.00 from $200.00 while maintaining a Buy rating on the stock. The semiconductor giant, currently valued at $245.7 billion, has shown remarkable momentum with a 51% surge over the past six months. According to InvestingPro data, analyst price targets for AMD range from $125.10 to $230.00.
The price target reduction stems from HSBC’s revised assumptions about AMD’s MI355 chip average selling price (ASP), which the firm now estimates at $23,000 rather than $25,000 per unit, calling this "a more prudent assumption given differential pricing for different customers."
This ASP adjustment has prompted HSBC to lower its 2026 AI GPU revenue estimates for AMD from $15.1 billion to $13.9 billion, though the firm notes this revised figure still stands 20% above current consensus estimates.
HSBC believes Wall Street "is still underestimating the pricing potential" of AMD’s AI GPU business, despite the slight downward revision in its own projections.
The firm also expects major cloud service providers including Meta, Microsoft, Oracle, and xAI to begin testing AMD’s MI400 rack solution, with results potentially available by the fourth quarter of 2025 or early first quarter of 2026, which could provide better visibility on MI400 revenue potential by early 2026. For deeper insights into AMD’s financial health and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Advanced Micro Devices (AMD) has announced a partnership with IBM to collaborate on next-generation quantum-centric supercomputing architectures. This collaboration aims to combine IBM’s quantum computers with AMD’s high-performance computing and AI accelerators, creating a hybrid approach to tackle complex problems. Additionally, AMD has experienced changes in its analyst ratings, with Truist Securities reiterating a Buy rating and maintaining a price target of $213, reflecting positive feedback from industry contacts regarding AMD’s role in the datacenter and AI markets. In contrast, Seaport Global Securities downgraded AMD’s stock rating from Buy to Neutral due to concerns about the company’s progress in the AI accelerator business.
Furthermore, AMD announced the resignation of its Chief Accounting Officer, Philip Carter, who will leave to become a Chief Financial Officer at another company. The company clarified that Carter’s resignation is not due to any disputes or disagreements regarding accounting practices or financial reporting. These developments highlight significant shifts and collaborations for AMD as it continues to navigate the competitive technology landscape.
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