TLDR
- HSBC analyst Frank Lee lifted AMD’s price target to $310 from $185, the highest on Wall Street
- AMD secured partnership with OpenAI and Oracle plans to use 50,000 MI450 AI chips starting next year
- Lee forecasts the OpenAI deal could deliver $80 billion in revenue by 2030
- Analyst’s 2026 revenue estimates exceed Wall Street consensus by 50%
- AMD stock climbed 9% and hit new 52-week high at $236.04
AMD shares surged more than 9% Wednesday after HSBC analyst Frank Lee raised his price target to $310. The new target jumps from his previous $185 forecast.
Lee kept his Buy rating on the stock. He sees AMD as a top beneficiary of expanding AI infrastructure spending.
The upgrade comes after AMD announced a partnership with OpenAI. Oracle also revealed plans to deploy 50,000 AMD chips across its data centers. These agreements have strengthened investor confidence in the company’s AI business.
Lee believes AMD’s MI450 AI chips can compete directly with Nvidia’s offerings. He estimates the OpenAI partnership alone could generate roughly $80 billion in revenue through 2030.
Street Underestimates AI Potential
The HSBC analyst argues Wall Street hasn’t fully recognized AMD’s AI chip opportunity. “We think the Street has undervalued AMD’s AI GPU business,” Lee stated.
His revenue projections for 2026 run 50% above consensus estimates. His 2027 forecast exceeds consensus by 45%.
Lee expects AMD will benefit from both higher chip pricing and growing shipment volumes. AI chip demand remains in early innings and could sustain momentum for years.
Oracle Deployment Timeline
Oracle outlined plans to expand AI cloud services using AMD’s Instinct MI450 Series GPUs. The rollout begins in the third quarter of next year.
Multiple analysts lifted their AMD price targets following the Oracle news. Wedbush raised its target from $190 to $270 while keeping an Outperform rating.
Analyst Ratings and Stock Performance
Wall Street rates AMD as a Strong Buy based on 30 Buy ratings and 10 Hold ratings. The average analyst price target stands at $248.83, suggesting 4.29% upside.
AMD stock has gained 95.7% year-to-date. Shares recently touched a new 52-week high of $236.04.
A $1,000 investment in AMD five years ago would be worth $2,839 today. The stock has experienced 24 moves exceeding 5% over the past year.
Last week, AMD dropped 5.9% when President Trump threatened new tariffs on Chinese goods. China responded with tighter export controls on rare earth metals and an antimonopoly probe into Qualcomm. Chinese customs began stricter inspections of semiconductor shipments at ports, creating supply chain uncertainty for chip companies.
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