TLDR
- AMD stock surged 9.3% following new product announcements and positive analyst coverage
- Company unveiled Instinct MI350 accelerators and upcoming MI400 “Helios” racks for 2025 release
- Piper Sandler raised price target to $140 while BofA maintained $130 target, calling AMD “next-best AI vendor”
- OpenAI’s Sam Altman appeared at AMD’s AI event, confirming feedback collaboration on MI400 roadmap
- AMD strengthened partnerships with Meta, Oracle, Microsoft, xAI, OpenAI, and Saudi startup Humain
AMD shares climbed 9.3% as the chipmaker rolled out its latest AI hardware lineup and earned praise from Wall Street analysts. The stock hit $126.96 following the company’s AI event in San Jose.
The semiconductor giant announced its Instinct MI350 accelerators alongside the upcoming MI400 “Helios” racks. These new systems are scheduled to ship next year as AMD looks to capture more AI market share.
Introducing the AMD Instinct MI350 Series GPUs, featuring the Instinct MI350X and Instinct MI355X, that set a new standard for GenAI and high-performance computing. pic.twitter.com/96srcutXdk
— AMD (@AMD) June 12, 2025
Piper Sandler analyst Harsh Kumar boosted AMD’s price target to $140, citing strength in the client business. Kumar pointed to several growth drivers including aging pandemic-era PCs needing replacement and AI integration across devices.
The analyst also highlighted potential benefits from tariff adjustments and the Windows 10 phaseout. These factors could drive PC market demand higher in the coming quarters.
Bank of America maintained its $130 price target while calling AMD the “next-best AI vendor” after Nvidia. Analyst Vivek Arya attended the San Jose event and noted continued execution on AMD’s AI roadmap.
Partnership Momentum Builds
The event featured a surprise appearance from OpenAI CEO Sam Altman. AMD revealed that OpenAI has been providing feedback on its MI400 roadmap development.
ICYMI: AMD CEO Lisa Su said at an AMD launch event on Thursday that the company's AI chips offer "greater efficiency" compared to Nvidia's chips. Sam Altman said OpenAI will use the new AMD chips. https://t.co/Zl1gkZN1My
— Entrepreneur (@Entrepreneur) June 16, 2025
This collaboration highlights AMD’s growing relationships with major AI companies. The chipmaker has expanded partnerships with Meta, Oracle, Microsoft, xAI, and Saudi startup Humain.
BofA’s Arya noted that no new hyperscaler customer was officially announced at the event. However, he believes there may be engagement with Amazon Web Services given AWS was a key event sponsor.
AWS typically prefers announcing new instances at its own events rather than partner gatherings. This could mean future collaboration announcements may come later through Amazon’s channels.
Financial Position Remains Strong
AMD trades at a price-to-earnings ratio of 93.35, well above the industry median. This premium valuation reflects investor optimism about future earnings growth from AI chip sales.
The company maintains a strong balance sheet with an Altman Z-Score of 9.08. This indicates solid financial health despite some pressure on operating margins recently.
Market capitalization stands at approximately $205.85 billion. The GF Value assessment suggests AMD is fairly valued at $138.05, close to current trading levels.
Previous concerns about declining data center and GPU revenues have eased with the new AI chip launches. Revenue rebounds in these segments are expected later in 2025 as products ship.
The company’s GF Score of 93 reflects its strong market position heading into the AI acceleration phase. Debt-to-equity ratios remain manageable while profitability metrics stay robust.
AMD’s current stock price reflects market confidence in its ability to compete with Nvidia in AI hardware. The MI400 series represents the company’s next major push into high-performance AI computing.
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