AMD Hikes MI350 AI GPU Price by 70%

AMD AMD shares jumped 4.3% on Monday after word got out that the Instinct MI350 AI GPUs are jumping from $15,000 to $25,000, a 70% bump.

It still undercuts Nvidia's entry?level Blackwell B200 at $30,000, so AMD figures the MI350's extra compute and bandwidth now match Nvidia's chops, justifying the premium. It's classic AMD: Nvidia?rival performance at a sweeter price.

Investors are cheering because this signals tight demand and solid backlogs for AI accelerators. The MI350 is aimed squarely at data centers running large language models and generative AI. Morgan Stanley reckons that the new pricing could tack on about $500 M to AMD's data center revenue next quarter if buyers play along. Market watchers will also track whether customers migrate to pricier MI300 series GPUs or stick with the still?discounted MI350.

Why it matters: A 70% price hike shows AMD has real pricing power in the red?hot AI chip race, which could boost its margins and top?line. Investors will be watching AMD's late?July earnings for the impact on bookings, average selling prices and profits.