It’s easy to be distracted by the amount and nature of news emanating from Wall Street about Nvidia or TSMC. Yet, many investors are looking outside of the two tech titans at companies like Advanced Micro Devices (AMD) instead. We wrote about AMD as part of the ‘AI5’ recently. Since then the news has only gotten better.
The ‘AI5’ refers to Microsoft, AMD, Nvidia, TSMC, and Broadcom.
In June, the CEO of AMD, Lisa Su, shared how she expects the AI processor market to soar past $500 billion in the next three years. Her firm is producing competing hardware to Nvidia. However she has promised customers that the prices are more competitive, and AMD claims that the speed is superior to that of Nvidia. Specifically in the case of AMD’s new MI350 series vs. Nvidia’s H100
Since Lisa’s comments on June 12, AMD stock has gone from $118 to $144 today (TradingView). This is a remarkable return with the uncertainty the company faces in being able to sell its AI chips globally.
HSBC Upgrades AMD to ‘Buy’
In a talk with Bloomberg HSBC analyst Frank Lee said AMD’s new MI350 series is undervalued and this may lead to higher revenues than initially predicted in 2026. HSBC doubled its price target for AMD from $100 to $200.
Other institutional investors are also optimistic about AMD’s AI potential. Hedge funds like Light Street Capital have been taking note of the growing AI market Lisa Su referred to.
Today, analysts on TradingView are also bullish about AMD. A quick peek on the X platform shows similar levels of enthusiasm from commentators like @MikeLongTerm or @HyperTechInvest.
The AI5 are worth keeping an eye on. The market seems to be in its early days rather than at the end of a long market cycle. Follow DisruptionBanking to keep uptodate with the most interesting investment news and features.
Investing in high-growth sectors like AI carries risks, and investors should conduct thorough due diligence. Past performance is not indicative of future results, and capital is at risk.
Author: Andy Samu
#AI5 #ArtificialIntelligence #AIInfrastructure #AISupplyChain #AMD #HSBC
See Also:
The AI5: The New Powerhouse Redefining the AI Era | Disruption Banking
Should the Magnificent Seven Form Part of Your Portfolio in 2025? | Disruption Banking
