HSBC Upgrades Advanced Micro Devices (AMD) Stock to Buy from Hold

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. The company’s stock was upgraded to a “Buy” rating from “Hold” by HSBC analyst Frank Lee with a street-high price target of $200. The analyst is now increasingly optimistic about Advanced Micro Devices, Inc. (NASDAQ:AMD)’s long-term growth potential and improved market performance in the GPU (Graphics Processing Unit) and CPU (Central Processing Unit) markets. Furthermore, the analyst noted stronger-than-expected pricing power in the company’s AI GPU lineup and increasing confidence in its data center roadmap.

A close up of a complex looking PCB board with several intergrated semiconductor parts.

Advanced Micro Devices, Inc. (NASDAQ:AMD) and HUMAIN, Saudi Arabia’s new AI enterprise, announced the landmark agreement to build the world’s most open, scalable, resilient, and cost-efficient AI infrastructure. This is expected to power future of global intelligence via a network of AMD-based AI computing centers stretching from the Kingdom of Saudi Arabia to the US. According to the agreement, the parties are expected to invest up to $10 billion to deploy 500 megawatts of AI compute capacity over the upcoming 5 years.

Longriver Investment Partners released its “Longriver Partners Fund” Q2 2025 investor letter. Here is what the fund said:

“Nvidia’s NVLink, its high-bandwidth interconnect, underpins training at scale, where GPUs must coordinate across racks. NVLink Fusion, announced this year, may extend that advantage by letting custom chips plug into Nvidia’s system rather than replace it. However, many inference tasks can be handled independently, one GPU at a time. That lowers the importance of networking, and with it, Nvidia’s edge in tightly integrated systems.

This has given Advanced Micro Devices, Inc. (NASDAQ:AMD) a window to become more than a second source. Its MI300X is now deployed at Microsoft, Meta, Oracle, and Dell. In some inference workloads, it beats Nvidia’s H100. As one expert put it, “ROCm used to be a science project. Now we’re finally seeing it run real workloads.” AMD plans to ship full-rack MI400 systems next year. It still trails in training, but inference gives it a real wedge into the market.

AMD is also leaning into openness. ROCm is open source, its interconnects run over Ethernet, not proprietary links, and it is sticking with x86 CPUs. That may appeal to buyers wary of lock-in or reluctant to cross-compile for ARM.”

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