HSBC Cuts AMD Price Target but Keeps Buy Rating

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 Best NASDAQ Stocks to Buy For Long Term. On September 9, HSBC reduced its price target for Advanced Micro Devices, Inc. (NASDAQ:AMD) from $200 to $185 while keeping a Buy rating.

HSBC updated its estimate for the average selling price (ASP) of Advanced Micro Devices, Inc.’s (NASDAQ:AMD) MI355 chip. The firm now expects the ASP to be $23,000 per unit, down from the previous estimate of $25,000. HSBC said this is “a more prudent assumption given differential pricing for different customers.”

As a result, HSBC also lowered its 2026 AI GPU revenue estimates for Advanced Micro Devices, Inc. (NASDAQ:AMD) from $15.1 billion to $13.9 billion. However, the firm pointed out that this revised figure is still 20% higher than the current consensus estimates.

HSBC said that the market “is still underestimating the pricing potential” of Advanced Micro Devices, Inc.’s (NASDAQ:AMD) AI GPU business.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American multinational semiconductor company that specializes in graphics processing units (GPUs), microprocessors, and high-performance computing solutions. The company serves various markets like gaming, data centers, and AI.

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Disclosure: None. This article is originally published at Insider Monkey.