Advanced Micro Devices
AMD’s next-gen AI chips, due for launch next year, have OpenAI as a client
The performance of Advanced Micro Devices’ latest AI chips is on par with Nvidia’s current Blackwell chips, HSBC analysts said.
In a note Thursday, HSBC analysts upgraded their rating on AMD to a “buy” from a “hold” and doubled their price target to $200.
AMD shares are jumping Thursday, while those of Nvidia’s are little changed.
The performance of Advanced Micro Devices’ (AMD) latest AI chips is on par with those from Silicon Valley rival Nvidia’s (NVDA), HSBC analysts said.
In a note Thursday, HSBC analysts upgraded their rating on AMD to a “buy” from a “hold” and doubled their price target to $200, noting that AMD’s latest series of chips can compete with Nvidia’s Blackwell GPUs. AMD launched its Instinct MI350 Series GPUs last month, claiming the chips offered four times more computing power than its previous generation.
“With the recent launch of the MI350 series, we were pleasantly surprised with the performance upgrades which imply that the MI350 series can compete with Nvidia latest-gen HGX B200 AI GPU,” HSBC analysts wrote. “Owing to the performance enhancements, the pricing premium is much higher than expected earlier which could help drive upside to earnings in 2025 and 2026.”
The analysts, led by Frank Lee, also wrote that there was further upside possible for AMD shares when the chipmaker launches its MI400 series next year, which could compete with Nvidia’s next-generation Vera Rubin platform—scheduled for the second half of 2026. AMD unveiled the MI400 last month in an event hosted by CEO Lisa Su and Sam Altman, CEO of OpenAI, which has signed on as a customer for the next-gen chips.
AMD shares are rising more than 4% to $144 in early Thursday trading, having gained around a fifth of their value this year. Shares in Nvidia, which briefly became the world’s most valuable company with an over $4 trillion market cap Wednesday, are little changed.
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