"HSBC's downgrade to Hold reflects concerns about limited upside to Q1 estimates and the expectation that AMD's upcoming earnings report will not match Intel's recent performance."
"The firm highlights that Taiwan Semiconductor's foundry capacity constraints will limit AMD's ability to capitalize on server demand in 2026, despite healthy market conditions."
"Simply Wall Street's assessment of AMD's fair value at approximately $300 suggests that the current share price of around $360 is roughly 20% overvalued."
"AMD's CEO Lisa Su emphasized the company's strong momentum entering 2026, driven by the increasing adoption of high-performance computing and AI technologies."
HSBC downgraded AMD's stock rating to Hold from Buy, raising the price target to $340. This reflects valuation constraints despite a 77% rally since April. The firm identifies three main concerns: limited upside to Q1 estimates, foundry capacity constraints from Taiwan Semiconductor, and elevated expectations following the stock surge. Simply Wall Street estimates fair value near $300, suggesting AMD shares are overvalued. AMD reported strong Q4 2025 revenue, with significant growth in Data Center revenue and free cash flow, indicating positive momentum heading into 2026.
Read at 24/7 Wall St.
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