Analyst raises AMD stock price target on AI momentum

Core Viewpoint - Advanced Micro Devices (AMD) received an upgrade from HSBC Global Research, with the stock rating raised from 'Reduce' to 'Hold' and the price target increased from $75 to $100, reflecting a shift in sentiment towards the company [1][2]. Group 1: Investment Opportunities - The upgrade is influenced by a $600 billion investment agreement between the Trump administration and Saudi Arabia, which may provide long-term opportunities for AMD, especially in AI and semiconductor infrastructure [2][3]. - Easing tariff pressures on AMD's international supply chain may offer margin relief, positively impacting the company's performance in the latter half of the year [3]. Group 2: Competitive Positioning - AMD's upcoming AI chip roadmap, particularly the MI300 series, is seen as a competitive move against Nvidia in the AI accelerator market, which may improve investor sentiment [4][6]. - The share price of AMD closed at $114.56, reflecting a 3.85% increase on the day and an 18.85% rise over the past month, driven by optimism regarding its role in the AI supply chain [5][6]. Group 3: Market Sentiment - While HSBC did not issue a 'Buy' rating, the increase in target price indicates that institutional investors recognize AMD's limited downside in the current macroeconomic environment [6].