HSBC raises AMD target to $540 but flags a troubling risk
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HSBC raises AMD target to $540 but flags a troubling risk Faizan Farooque Thu, November 5, 2026 at 12:42 PM EST 1 min read HSBC -1.63% AMD -15.71% This article first appeared on GuruFocus . HSBC raised its price target on Advanced Micro Devices Inc. ( AMD , Financials ) after the company's third- quarter results release , citing greater demand for server processors.HSBC analyst Frank Lee lifted his target to $540 from $500 but kept a Hold rating, saying the probable return did not warrant a more bullish recommendation.AMD shares were trading at $488.78, down 13.7% in the last week's report.The chipmaker said third-quarter sales was $13.38 billion, up 45% from a year earlier and $279 million over average projections.Data-centers sales soared 97% from a year ago and 27% from the previous quarter, fueled by demand for server CPUs and graphics processing units.But HSBC said there was weakening in client CPU demand, potential production-yield problems at packaging vendors and uncertainties about the introduction of the Helios platform.Other experts were more bullish. DA Davidson boosted its price objective to $600 and StoneX maintained a Buy rating with a $685 goal. TD Cowen maintained a Buy rating and $675 price target.The mixed reviews are a reminder that as AMD increases its data-center business, execution matters.The next trigger will be management's progress on the deployment of Helios and if ongoing server demand will overcome weakening PC market circumstances.
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