HSBC Downgrades AMD Stock Over AI GPU Market Concerns

The bank slashes AMD's price target by 45%, citing a less competitive AI GPU roadmap and reliance on struggling suppliers.

HSBC has downgraded AMD's stock rating from 'Buy' to 'Reduce' and cut its price target from $200 to $110, reflecting a 45% reduction.
The downgrade is attributed to AMD's perceived lack of competitiveness in the AI GPU market, particularly against industry leader Nvidia.
Analysts point to lukewarm demand for AMD's MI325 GPU, partly due to Samsung's challenges in producing higher-spec HBM3e memory chips.
AMD's upcoming MI350 GPU launch in late 2025 and potential MI400 release in 2026 are seen as too late to significantly challenge Nvidia's dominance.
The broader semiconductor market has seen AMD underperform its peers, with its stock dropping 24% over three months compared to a 12% decline in the sector index.