HSBC Cuts AMD Price Target but Keeps Buy Rating

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 Best NASDAQ Stocks to Buy For Long Term. On September 9, HSBC reduced its price target for Advanced Micro Devices, Inc. (NASDAQ:AMD) from $200 to $185 while keeping a Buy rating.

HSBC updated its estimate for the average selling price (ASP) of Advanced Micro Devices, Inc.’s (NASDAQ:AMD) MI355 chip. The firm now expects the ASP to be $23,000 per unit, down from the previous estimate of $25,000. HSBC said this is “a more prudent assumption given differential pricing for different customers.”

As a result, HSBC also lowered its 2026 AI GPU revenue estimates for Advanced Micro Devices, Inc. (NASDAQ:AMD) from $15.1 billion to $13.9 billion. However, the firm pointed out that this revised figure is still 20% higher than the current consensus estimates.

HSBC said that the market “is still underestimating the pricing potential” of Advanced Micro Devices, Inc.’s (NASDAQ:AMD) AI GPU business.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American multinational semiconductor company that specializes in graphics processing units (GPUs), microprocessors, and high-performance computing solutions. The company serves various markets like gaming, data centers, and AI.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.