Habib Ur Rehman
2 min read
In This Article:
AMD (NASDAQ:AMD) unveiled a major advance in its AI hardware roadmap in mid-June. The company introduced the Instinct MI350 accelerator series and offered a preview of the MI400 lineup expected in 2026. AMD (NASDAQ:AMD) also revealed its new Helios AI server platform, which seeks to deliver a full-stack alternative to Nvidia’s dominant infrastructure.
The MI350 is positioned as a fourfold improvement over its predecessor, with AMD claiming it offers substantially better compute performance per dollar relative to Nvidia’s Blackwell B200 GPU. The company is also pushing hard on open standards, and hopes to attract developers and hyperscalers who are increasingly wary of vendor lock-in.
Key clients appear to be buying in, OpenAI, Meta, Microsoft, and Oracle were all named as early adopters. OpenAI’s Sam Altman even joined AMD CEO Lisa Su onstage during the reveal, which might be a signal of strategic alignment at the highest level.
Despite the impressive technical showcase, AMD shares slipped roughly 2% following the announcement. Analysts pointed to investor fatigue around AI chip hype and the longer ramp time for meaningful revenue. There’s confidence in AMD’s positioning, but execution, especially on the software stack and supply chain, will be critical.
Still, with Nvidia setting an aggressive pace, AMD’s latest move isn’t just about keeping up; it’s about carving out a meaningful share in a market where data center AI spending is projected to surge over the next several years. The next leg will hinge on customer deployments and real-world benchmarks.
Recently we shared Mizuho's latest views and BofA's upgrade of AMD stock.
While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some other AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None.
