AMD Stock Jumps as AI Chip Prices Soar Ahead of Q2 Earnings
July 28 - Advanced Micro Devices AMD shares leapt about 3.5% Monday after word broke that the chipmaker plans to boost the price of its Instinct MI350 AI accelerator from $15,000 to $25,000, a hefty 67% bump.
HSBC analysts first flagged the dramatic price move, noting that even at $25,000 the MI350 undercuts Nvidia's NVDA Blackwell B200. Such a bold premium suggests AMD sees robust demand for its AI gear and could translate into significant revenue upside in its next quarterly release.
Wells Fargo's Aaron Rakers and his team wasted no time reaffirming their bullish stance. They point to the freshly launched MI355X GPUs, shipping since June, as the linchpin for AMD's August 5 Q2 report. Market watchers will zero in on how swiftly customers embrace MI355X to gauge second?quarter momentum.
Looking ahead, Rakers forecasts roughly $1.65 billion in data?center GPU sales in fiscal Q3 2025, marking modest year?on?year growth. That outlook already factors in an $800 million drag from export limits on MI308X shipments to China, pending license renewals. Any green light there could inject fresh upside into AMD's back half.
The MI350 price hike and MI355X rollout reinforce AMD's bid for a larger slice of the $500 billion AI compute pie. As AMD vies with Nvidia on performance and value, its ability to command heftier prices without ceding market share will set the tone for next week's earnings call.