HSBC Cuts AMD Price Target but Keeps Buy Rating

Core Viewpoint - HSBC has reduced its price target for Advanced Micro Devices, Inc. (NASDAQ:AMD) from $200 to $185 while maintaining a Buy rating, indicating a cautious outlook despite the company's potential in the AI GPU market [1][2]. Group 1: Price Target and Revenue Estimates - HSBC has lowered its average selling price (ASP) estimate for AMD's MI355 chip from $25,000 to $23,000, reflecting a more conservative approach due to varying pricing for different customers [2]. - The firm's 2026 AI GPU revenue estimates for AMD have been revised down from $15.1 billion to $13.9 billion, although this figure remains 20% higher than current consensus estimates [2]. Group 2: Market Potential and Company Overview - HSBC believes that the market is still underestimating the pricing potential of AMD's AI GPU business, suggesting that there may be significant upside in this segment [3]. - AMD is recognized as a leading semiconductor company specializing in graphics processing units (GPUs), microprocessors, and high-performance computing solutions, serving markets such as gaming, data centers, and AI [3].