Analyst lowers AMD stock price target

Core Insights - AMD's stock dropped over 6% following Broadcom's strong quarterly results and a significant $10 billion order for custom chips from a client believed to be OpenAI [1] - The market may be shifting towards custom silicon chips for AI tasks, posing a challenge to AMD's GPU dominance [2] - AMD is now competing with Nvidia in the GPU market while also facing threats from Application-Specific Integrated Circuits (ASICs) [3] Price Target Adjustments - HSBC lowered AMD's price target from $200 to $185 while maintaining a "Buy" rating, with the average price target now at $184.74 [4] - The lowest price predictions for AMD stock are at $120, while the highest reach $230 according to TipRanks [4] Revenue Forecast Changes - HSBC reduced its 2026 AI GPU revenue forecast for AMD from $15.1 billion to $13.9 billion, although it noted that Wall Street might be underestimating AMD's AI GPU pricing potential [6] - Cloud providers like Meta are expected to begin testing AMD's MI400 rack solution, which could influence future revenue [6] Product Developments - The MI300 series shows promise but lacks large-scale customer adoption, while Broadcom's Tomahawk switches provide a more integrated solution for hyperscalers [7] - AMD has partnered with IBM to advance quantum-centric supercomputing architectures, combining IBM's quantum systems with AMD's computing and AI accelerators [7]