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].

Core Viewpoint - Advanced Micro Devices, Inc. (AMD) is currently under scrutiny by analysts, with a recent price target adjustment reflecting revised expectations for its MI355 chip pricing and revenue potential [1][2]. Group 1: Price Target and Revenue Estimates - HSBC analyst Frank Lee has lowered AMD's price target from $200.00 to $185.00 while maintaining a Buy rating [1]. - The revision in price target is based on a new average selling price (ASP) estimate for the MI355 chip, now projected at $23,000 per unit instead of $25,000 [2]. - Despite the lowered ASP, revenue estimates for AMD remain above consensus, with the firm believing that the market is underestimating AMD's pricing potential [2]. Group 2: Future Revenue Projections - AMD's 2026 estimated AI GPU revenue has been revised down from $15.1 billion to $13.9 billion, which is still 20% above consensus estimates [3]. - The management has indicated a significant pricing uplift from the MI325 chip, suggesting potential for upside in the market [3]. - Major cloud service providers, including Meta, Microsoft, Oracle, and xAI, are expected to begin testing the MI400 rack solution, with results anticipated by late 2025 or early 2026, which may enhance order visibility for MI400 revenue [3]. Group 3: Company Overview - Advanced Micro Devices, Inc. specializes in the development and sale of semiconductors, processors, and GPUs for various applications, including data centers, gaming, AI, and embedded systems [3].

It's been a big day for AMD. Really exciting. I love talking about our new products.You know that. So, we just recently uh announced our MI355 chip. This is our newest uh AI chip and it is fantastic.It's the best inference accelerator out there in the market. And you know, if you look at what's happening in AI today, um we're just seeing so many more use cases, John, like people are using AI everywhere. And so, one of the most important things for our customers is to get more efficiency um from their chips. ...