AMD will deploy next-generation AI chips, but markets will step carefully
AMD (NASDAQ:AMD) In mid-June, we revealed major advances in the AI hardware roadmap. The company introduced the Instinct MI350 Accelerator Series and provided a preview of the expected MI400 lineup for 2026. AMD (NASDAQ:AMD) has also revealed the new Helios AI Server platform that is seeking to provide a full stack alternative to NVIDIA’s dominant infrastructure.
The MI350 is positioned as a four-fold improvement over its predecessor, with AMD claiming to offer significant calculation performance per dollar compared to Nvidia’s Blackwell B200 GPU. The company is also strongly pushing open standards and hopes to attract developers and hyperschools who are increasingly wary of vendor lock-in.
It appears that the main clients are Openai, Meta, Microsoft and Oracle purchases. Openai’s Sam Altman joined AMD CEO Lisa Su on Stage during the show. This could be a signal of strategic alignment at the highest level.
Despite an impressive technical showcase, AMD stock slipped around 2% after the announcement. Analysts pointed to investors fatigue around AI chip hype and long ramp times for meaningful revenue. I’m confident in AMD’s positioning, but it’s important to run, especially the software stack and supply chain.
Still, with Nvidia setting a positive pace, AMD’s latest move isn’t just about catching up. It is to open up meaningful shares in a market where data center AI spending is expected to surge over the next few years. The next leg rests on customer deployment and real-world benchmarks.
I recently shared Mizuho’s latest view and Bofa Upgrade of AMD stock.
While we acknowledge AMD’s potential as an investment, our conviction lies in the belief that other AI stocks hold a greater promise to offer higher returns and limited downside risk. If you’re looking for a very inexpensive AI stock that is also a major beneficiary of Trump’s tariffs and supervision, check out our free report. Best Short-Term AI Stocks.
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Disclosure: None.