Advanced Micro Devices (AMD) stock gained over 9% on Wednesday after top HSBC analyst Frank Lee raised his price target to a Street-high $310 from $185. The new price target implies nearly 30% upside from the current levels. The 4-star analyst reaffirmed his Buy rating on the stock, calling AMD one of the strongest beneficiaries of the growing AI infrastructure boom.
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The hike follows news of AMD’s partnership with OpenAI and plans to deploy 50,000 AI chips in Oracle’s (ORCL) data centers. These deals have boosted investor confidence in AMD’s role in powering the next wave of AI infrastructure.
HSBC Sees More Upside in AI Chips
Lee said AMD’s new MI450 AI chips are strong enough to compete with Nvidia’s (NVDA) products. He estimates the OpenAI deal could bring in about $80 billion in revenue by 2030 if demand keeps rising.
The analyst believes most investors still underestimate AMD’s potential. “We think the Street has undervalued AMD’s AI GPU business,” he wrote, noting that his forecasts are 50% higher than consensus for 2026 and 45% above for 2027. He also sees room for higher pricing and more chip shipments as AI adoption spreads.
Lee added that AI chip demand is still in the early stages and could stay strong for years.
Is AMD Stock a Buy, Sell, or Hold?
HSBC’s bullish call adds to growing optimism on AMD across Wall Street. Analysts say stronger visibility in its data center business and rising demand for AI accelerators could help AMD close the gap with Nvidia.
Currently, Wall Street has a Strong Buy consensus rating on Advanced Micro Devices stock based on 30 Buys and 10 Holds. The average AMD stock price target of $248.83 indicates about 4.29% upside potential.
