AMD stock rose Thursday after an analyst upgraded Advanced Micro Devices to buy from hold, citing the company's artificial intelligence chip pipeline.
HSBC analyst Frank Lee turned positive on AMD stock and doubled his price target to 200 from 100.
On the stock market today, AMD stock surged 4.2% to close at 144.16.
In a client note, Lee said he believes AMD's pipeline of AI graphics processing units will surprise with a higher-than-expected pricing premium for its MI350 data center processor.
Lee said AMD has caught up with rival Nvidia's Blackwell processors with its latest Instinct accelerators.
As a result, AMD could see "significant upside" to its fiscal 2026 AI revenue, Lee said. He also is encouraged by AMD's upcoming MI400 rack architecture.
However, elsewhere on Wall Street, Goldman Sachs initiated coverage of AMD stock with a neutral rating and 140 price target.
AMD plans to report its fiscal second-quarter results on Aug. 5.
AMD stock is on the IBD Tech Leaders list.
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