On Tuesday, HSBC upgraded Advanced Micro Devices (AMD) stock to Hold from Sell and increased the price target to $100 from $75, noting the recent re-rating of the shares due to the Saudi Arabia artificial intelligence (AI) deal and easing of tariff tensions. AMD stock rose about 4% yesterday, on the rating upgrade and news of delay in European Union (EU) tariffs.
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AMD recently reported better-than-expected results for the first quarter of 2025, including upbeat growth in its data center revenue. This helped in reviving investor sentiment in the chipmaker’s stock. Investors have been worried about AMD lagging behind in the AI race compared to its rivals, mainly Nvidia (NVDA). However, AMD stock is still down 5.2% year-to-date, as concerns about chip export curbs, tariff uncertainties, and macro challenges remain.
Meanwhile, Nvidia is scheduled to announce its Q1 FY26 results today. Analysts expect the company to report a 20% growth in EPS (earnings per share) to $0.73. They expect revenue to rise by 66.5% to $43.3 billion.
HSBC Upgrades AMD Stock on Improved Potential
HSBC analyst Frank Lee upgraded Advanced Micro Devices stock as he sees potential for upside in the future from the deal between the U.S. and Saudi Arabia. Earlier this month, the Trump administration announced a $600 billion investment commitment by Saudi Arabia across several industries in the U.S., including technology and defense.
While the 4-star analyst finds AMD “appealing in terms of long-term TAM (total addressable market) opportunity,” he contended that any potential upside for 2025 is currently unclear.
Meanwhile, Lee is positive about AMD’s upcoming AI chips. Notably, he expects AMD to gain from a new AI GPU (graphics processing unit) launch in 2025 and next year. He also believes that AMD is in a good position to fight competition from Intel (INTC), as it continues to gain market share.
Is AMD Stock a Good Buy, Hold, or Sell?
Overall, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 22 Buys and 10 Holds. The average AMD stock price target of $126.55 implies 10.5% upside potential from current levels.
