HSBC Upgrades Advanced Micro Devices (AMD) Stock to Hold, Lifts PT

On May 28, HSBC upgraded the rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) stock from Sell to Hold, increasing its price target from $75 to $100.

Frank Lee from HSBC made this upgrade on AMD, citing the recent Saudi Arabia AI deal and easing of tariff tensions to be a positive development for the company. AMD posted better-than-expected results for the first quarter of 2025, driven by upbeat growth in the data center revenue. The Q1 results have revived investor sentiment for AMD stock.

AMD posted a 36% increase in its Q1 revenue compared to the same period a year ago, reaching $7.4 billion. The revenue was driven by robust growth in the data center and client segments. The company experienced a 55% growth in net income, fueled by a higher percentage of data center product sales and a robust Ryzen processor mix. Data center segment revenue soared nearly 57% year-over-year, with major contributions from EPYC CPU and Instinct AI accelerator sales.

Lee sees potential upside for AMD in the future from the deal between the U.S. and Saudi Arabia. The analyst also cited that AMD is “appealing in terms of long-term total addressable market (TAM) opportunity.” Lee is optimistic about AMD’s upcoming AI chips and said that the company can gain from the new product launches, getting in a position to fight competition from Intel.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing, graphics, and visualization technologies. AMD operates four segments, including Data Center, Client, Gaming, and Embedded.

While we acknowledge the potential of AMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMD and that has 100x upside potential, check out our report about this cheapest AI stock.

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