Advanced Micro Devices (NASDAQ: AMD) received a notable upgrade on Tuesday as HSBC Global Research analyst Frank Lee, CFA, raised the stock’s rating from ‘Reduce’ to ‘Hold’ and sharply increased the price target from $75 to $100.
The re-rating reflects a shift in sentiment following two major tailwinds for the semiconductor firm. First is the Trump administration’s recently announced $600 billion investment agreement with Saudi Arabia, which includes strategic funding across tech and defense sectors. The deal, while still light on specifics, represents a potentially large long-term opportunity for AMD, particularly as Saudi Arabia aggressively expands its artificial intelligence and semiconductor infrastructure footprint.
“We view this deal as appealing in terms of long-term total addressable market,” Lee wrote in the research note.
However, HSBC emphasized that the immediate earnings impact for 2025 remains uncertain, and thus the firm is taking a more tempered stance in the short term with a ‘Hold’ rating rather than a ‘Buy.’
Easing tariff pressures on AMD
The second catalyst cited is easing tariff pressures, which have removed some headwinds from AMD’s international supply chain, and may offer margin relief heading into the latter half of the year.
In addition, HSBC pointed to AMD’s upcoming AI chip roadmap as a reason to be less pessimistic about the stock’s near-term trajectory. While Nvidia continues to dominate headlines in the AI accelerator race, AMD is gradually positioning its MI300 series to compete in key data center deployments.
AMD share price analysis
Shares of AMD closed Tuesday at $114.56, up 3.85% on the day and +18.85% over the past month, buoyed by growing investor optimism surrounding its role in the AI supply chain and geopolitical alignment.
While HSBC stopped short of issuing a ‘Buy’ rating, the jump in target price reflects growing institutional recognition that AMD’s downside may be limited in the current macro landscape. For investors, the reassessment is a signal that the company’s long-term narrative is starting to firm up, even if the near-term fundamentals remain in flux.
Featured image via Shutterstock
