CEO Dr. Lisa Su, AMD executives, and industry luminaries unveil the AMD vision for Advancing Al.
Courtesy: AMD
Shares of Advanced Micro Devices rose nearly 10% on Monday after analysts at Piper Sandler lifted their price target on the stock on optimism about the chipmaker’s latest product announcement.
The analysts said they see a snapback for AMD’s graphics-processing units (GPUs) in the fourth quarter. That’s when they expect the chipmaker to be through the bulk of the $800 million in charges that AMD said it would incur as a result of a new U.S. license requirement that applies to exports of semiconductors to China and other countries.
Last week, AMD revealed its next-generation AI chips, the Instinct MI400 series. Notably, the company unveiled a full-server rack called Helios that enables thousands of the chips to be tied together. That chip system is expected to be important for artificial intelligence customers like cloud companies and developers of large language models.
AMD CEO Lisa Su showed the products on stage at an event in San Jose, California, alongside OpenAI CEO Sam Altman, who said they sounded “totally crazy.”
“Overall, we are enthused with the product launches at the AMD event this week, specifically the Helios rack, which we think is pivotal for AMD Instinct growth,” the analysts wrote in their note.
Piper Sandler raised its price target for AMD’s share price from $125 to $140.
The stock jumped past $127 on Monday and is at its highest since Jan. 6, before President Donald Trump announced sweeping new tariffs or AMD warned of the chip control charges.
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