‘Time to Load Up’: Frank Lee Turns Ultra-Bullish on AMD Stock, Sees AI Surge Ahead
Analyst Now Sees AMD AI Revenue and Price Target Soaring After MI350 Series Surprise
AMD’s Fortunes Rebound as AI Chip Prospects Brighten
After months of skepticism, Advanced Micro Devices (NASDAQ:AMD) is back in the AI spotlight—and so is the optimism from Wall Street’s toughest critics. HSBC analyst Frank Lee, who once called for caution on AMD, has flipped to one of the Street’s most bullish stances, telling investors it’s “time to load up” as AMD’s AI roadmap exceeds expectations.
- Lee, who downgraded AMD to Reduce in January due to fears over a “weaker FY26e AI revenue outlook,” has now upgraded the stock all the way to Buy, doubling his price target to $200 (from $100)—a projected 39% gain from current levels.
- This $200 target is among the highest on Wall Street, signaling newfound conviction in AMD’s growth story.
The MI350 Series: AMD’s Breakthrough Moment
The main catalyst for Lee’s dramatic shift is the launch of AMD’s MI350 series, a new generation of AI GPUs that are beating expectations on performance and pricing.
- In recent tests, the MI350 series outperformed even Nvidia’s cutting-edge HGX B200 chips in several key benchmarks.
- Lee was particularly surprised by the “pricing premium” these chips can command—raising his expected average selling price for the MI355 model from $15,000 to $25,000.
- As a result, Lee has raised his 2025 AI GPU revenue forecast to $8.5 billion, which is 34% above consensus, and is now calling for $15.1 billion in AI revenue for 2026—a whopping 57% above current market estimates.
Short-Term and Long-Term Tailwinds
Lee notes that the impact of the MI350’s strong pricing could show up as early as the second half of 2025, with AMD’s product mix shifting rapidly toward high-margin AI chips.
- While management recently flagged a $1.5 billion revenue hit from export curbs, Lee argues the MI350’s higher ASPs and robust demand will more than offset those headwinds.
- Looking to 2026 and beyond, the launch of the MI400 series (AMD’s answer to Nvidia’s Vera Rubin platform) could drive another wave of upside, as AMD rolls out its first rack-scale architecture for AI.
What’s Next for AMD Stock?
- Despite Lee’s optimism, consensus among Wall Street analysts is more cautious: 25 Buys, 10 Holds, and an average price target of $134.03, suggesting near-term volatility or pullback.
- However, if Lee’s thesis plays out, further price target upgrades and rating changes may soon follow as the Street catches up to AMD’s AI progress.
The Bottom Line
With strong new products and better-than-expected pricing power, AMD could be on the verge of a breakout year in AI. Frank Lee’s dramatic reversal from skeptic to bull, and his Street-high $200 price target, signals that the narrative around AMD may be about to shift in a big way
