HSBC raises AMD price target but downgrades to Hold, citing limited upside after strong rally.

HSBC analyst Frank Lee raised AMD's price target to $340 from $335 but downgraded the stock to a Hold rating, signaling limited near-term upside after a strong rally. AMD shares traded at $360, implying a potential 5.7% downside relative to the new target. The valuation has expanded significantly, with the price-to-earnings ratio rising from 19x to nearly 33x projected 2027 earnings. While demand for AI and semiconductors remains strong, production capacity limits may constrain future earnings growth. Overall, Wall Street remains cautiously optimistic with a Moderate Buy consensus and an average 12-month target of $308.09, reflecting some expected pullback amid positive AI-driven momentum.