AMD: stock rises as HSBC expresses confidence in AI
April 16, 2024 at 10:53 am EDT
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AMD posted one of the strongest gains on the S&P 500 on the New York Stock Exchange on Tuesday after HSBC upgraded its recommendation on the stock to buy.
About an hour after opening, the processor manufacturer's shares gained 1.6%, while the S&P fell by 0.1%.
HSBC has raised its recommendation on the stock, with a price target raised from $180 to $225.
In a research note, the British bank believes that the American group enjoys sufficient demand and has the right capabilities to exceed its sales target of over $3.5 billion in graphics processing units (GPUs) for AI in 2024.
It also believes that AMD's next-generation AI chips, to be launched in the second half of this year, could compete directly with Nvidia's.
As Nvidia cannot possibly control 100% of the AI GPU market, HSBC expects AMD to capture 10% of the segment by 2025, representing potential sales of $12.3 billion next year.
These comments come as AMD announced on Tuesday the launch of new AI-powered Ryzen processors for mobile devices and laptops.
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Advanced Micro Devices, Inc. specializes in the design, manufacturing and marketing of semiconductors and microprocessors. The group sells processors, chips, cards, connection products, adapters, etc. intended primarily for computers, servers, workstations, telephones, and game consoles.
Net sales are distributed geographically as follows: the United States (34.6%), China (15.1%), Japan (20.4%), Singapore (9.8%), Europe (8.9%), Taiwan (8.1%) and others (3.1%).
AMD (ADVANCED MICRO DEVICES) 
