AMD Shares Jump as Its AI Chips Rival Nvidia’s Performance
From a technical perspective, AMD appears to be entering a bullish trend. Its 50-day moving average is approaching the 200-day average.
Quick overview
- AMD shares have risen over 5% recently, driven by analyst confidence in its AI chips competing with Nvidia.
- The stock is up 19% year-to-date and has surged 90% since April, reaching a market cap of $235.7 billion.
- HSBC analysts upgraded AMD's rating to 'Buy' and raised the price target to $200, anticipating significant revenue growth from its AI segment.
- Technical indicators suggest a bullish trend for AMD, supported by positive comments from CEO Lisa Su regarding the company's AI strategy.
Advanced Micro Devices (AMD) shares have climbed more than 5% in recent sessions after a Wall Street analyst noted that the company’s latest AI chips could comfortably compete with Nvidia’s dominant products.
The stock is now up 19% year-to-date and has rallied 90% since its April low, giving AMD a market capitalization of $235.7 billion.
AMD’s AI Chips Rival Nvidia’s Market Leaders
According to HSBC analysts, AMD’s MI350 chip series is comparable to Nvidia’s current Blackwell line, while next year’s MI400 lineup is expected to challenge Nvidia’s upcoming Vera Rubin platform.
HSBC now estimates the average selling price of the MI355 could reach $25,000 per unit—far above its previous $15,000 estimate. This substantial increase could drive a major revenue boost in AMD’s AI segment for fiscal year 2026 and trigger a stock revaluation the market has yet to fully price in.
As a result, HSBC upgraded its rating on AMD from “Hold” to “Buy” and raised its price target from $100 to $200—a potential upside of 38% from current levels.
Positive Technical and Fundamental Signals
From a technical perspective, AMD appears to be entering a bullish trend. Its 50-day moving average is approaching the 200-day average, hinting at a possible golden cross. Meanwhile, the relative strength index (RSI) remains just below overbought levels, supporting continued momentum.
Investor optimism was also fueled by comments from CEO Lisa Su at AMD’s AI event last month, where she reaffirmed the company’s commitment to an open ecosystem. Su emphasized AMD’s plan to support all major AI frameworks and deliver full-stack solutions aimed at reducing the cost and complexity of AI hardware deployment.
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