1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Research at:https:/ Listen to our ins

2、ightsFind out moreHSBCGlobal InvestmentResearchPodcasts Turning bullish as we think AI GPU pipeline will surprise with higher-than-expected MI350 pricing premium AMD catches up with MI350 competitive to Blackwell;MI400 to drive potential upside in 2026 Upgrade to Buy with higher TP of USD200(from US

3、D100)Turning bullish on new product pipeline:We highlighted in our 8 January note,Downgrade to Reduce that AMD could see weaker FY26e AI revenue outlook as the AI GPU roadmap seemed less competitive.However,we now believe there could be significant upside to FY26e AI revenue as our revised forecast

4、of USD15.1bn is now 57%above consensus forecasts of USD9.6bn driven by a higher-than-expected pricing premium of its recent MI350 series launch.We are also encouraged by its MI400 rack architecture(to be launched in 2026)but it remains too early to quantify.Hence,we now expect that upside to FY26e A

5、I revenue will lead to higher re-rating to AMD that is not fully priced in by the market despite the 14%share price rally post its AI day event(12 June).MI350 series driving pricing power came earlier than expected:We were previously underestimating the pricing premium for the MI350 series given lim

6、ited BOM(bill of material)cost addition from MI325.However,with performance comparable to Nvidias B200,we now believe the ASP for MI355 can be USD25k(vs previous assumption of USD15k).We believe two factors can help drive the MI350 series success:1)it being comparable to Nvidias B200 but still at a