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Advanced Micro Devices’ latest chip release has thrust the company back into the AI game with a potential to rival Nvidia, according to HSBC. Analyst Frank Lee upgraded the chipmaker to buy from hold with a revised price target of $200, which suggests a whopping 44.5% potential upside for the stock. Lee’s previous price target on shares was $100. According to Lee, AMD’s recently launched MI350 series has a significant pricing premium and performance upgrades that can compete with Nvidia Blackwell line — specifically its latest-gen HGX B200 AI graphics processing unit. He wrote that he is now “turning bullish as we think AI GPU pipeline will surprise with higher-than-expected MI350 pricing premium.” The impact of this MI350 pricing surprise could materialize as soon as the second half of this year, the analyst said. “With performance comparable to Nvidia’s B200, we now believe the ASP for MI355 can be USD25k (vs previous assumption of USD15k),” he said. “We now expect that upside to FY26e AI revenue will lead to higher re-rating to AMD that is not fully priced in by the market despite the 14% share price rally post its AI day event.” AMD during its June 12 Advancing AI event launched the AMD Instinct MI350 Series GPUs , which includes the Instinct MI350X and Instinct MI355X. The company is also planning to release its full-server Helios AI rack in 2026, which would be built on its next-gen Instinct MI400 Series GPUs. These chips would compete with Nvidia’s Blackwell line of processors, AMD CEO Lisa Su said last month. Lee expects AMD has significant upside to its fiscal year 2026 AI revenue given the pricing premium of its MI350 line compared to Nvidia’s offerings. The MI350 chips are also attractive as they can be deployed using existing data center infrastructure, he added. Shares popped 2% after the upgrade. Year to date, AMD has gained 14.6%.
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