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HSBC Lifts AMD Price Target to $310 on OpenAI Deal Visibility

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the AI Stocks Analysts Are Watching Closely. On October 15, HSBC analyst Frank Lee raised his price target on the stock to $310 from $185 and reaffirmed his Buy rating. The firm believes that AMD’s OpenAI deal is poised to bring massive AI revenue upside potential.

“OpenAI deal implies massive AI revenue upside potential, which is still under-estimated by consensus. We believe this deal gives enhanced visibility into AMD’s AI GPU revenue opportunity till 2030.”

The companies agreed last week that OpenAI will deploy six gigawatts of AMD GPUs over several years. The deployment of the first 1 gigawatt AMD Instinct MI450 GPUs will begin in the second half of 2026.

“Since the deployment is set to begin with the MI450 series, we used the power consumption of MI450 as the base. We believe that the total revenue opportunity for AMD from this OpenAI deal is around USD80bn – more than 10x its 2025e AI GPU revenue of USD7.3bn.”

The analysts lifted their 2026 estimates for AI GPU revenue to $19.8B from $13.9B. This reflects expectations of a 0.5GW deployment for OpenAI in the second half of 2026.

“We believe AMD has also increased its CoWoS allocation to 70k-80k wafers for 2026e. With constant capacity expansion and increased visibility, we believe AMD should be able to continue expanding its CoWoS allocation into 2027e as well.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.

While we acknowledge the risk and potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks Every Investor Should Watch and 10 AI Stocks in Focus on Wall Street

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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