HSBC Maintains Buy Rating on AMD Despite Price Target Cut, Highlights AI Accelerator Potential

HSBC analyst Frank Lee trimmed Advanced Micro Devices' price target to $185 from $200, citing revised pricing assumptions for its AI accelerators. The adjustment reflects a more nuanced approach to GPU pricing tiers rather than a standardized model, lowering the average selling price forecast to $23,000 per unit.

AMD shares have surged 25% year-to-date in 2025, bolstered by its MI355 GPU's pricing power and management's emphasis on higher-value product mix. Lee maintains a Buy rating, underscoring AMD's dual strength in GPU and CPU markets since his July upgrade when the firm regained AI momentum.

The revised outlook reduces 2026 AI GPU revenue projections to $13.9 billion from $15.1 billion, yet positions AMD as a long-term play in the accelerating AI hardware race. Market watchers anticipate upside potential from custom pricing strategies and sustained demand for AI infrastructure.