AMD Stock Jumps 3% After HSBC Upgrades AMD to Buy Due to "AI GPU Pipeline"

Advanced Micro Devices was upgraded to Buy from Hold by HSBC due in part to the pricing premium for the semiconductor company's new MI350 series versus competing offerings.

AMD jumped 3% during early market trading on Thursday.

The bank also doubled its price target to a hefty $200 from $100.

HSBC analyst Frank Lee said AMD's new MI350 series comes at a significant pricing premium to competitor Nvidia's (NVDA) Blackwell models, such as the HGX B200.

"With performance comparable to Nvidia's B200, we now believe the ASP for MI355 can be USD25k (vs previous assumption of USD15k)," Lee said. "We now expect that upside to FY26e AI revenue will lead to higher re-rating to AMD that is not fully priced in by the market despite the 14% share price rally post its AI day event."

AMD might experience a better-than-expected "AI GPU pipeline" due to the MI350 series pricing premium. The MI350 chips can be installed into existing data center infrastructure, which also creates appeal.

"We're investing heavily in an open ecosystem," said AMD CEO Lisa Su last month during the company's AI event. "We are really supporting every framework. We are delivering full-stack solutions. We believe an open ecosystem is essential for the future of AI ... No matter where AI runs or how much compute you need, AMD has the right solution. Innovation truly takes off in an open system."

HSBC expects even more upside when the MI400 GPU series is released.