Advanced Micro Devices (AMD)’s new MI350 AI chip line plays a healthy rival to Nvidia’s Blackwell processors, putting AMD stock in a solid position. Advanced Micro Devices (AMD) is in a great position following its presentation at Bank of America’s recent Global Technology Conference. The company’s CFO, Jean Hu, and Head of Investor Relations, Matt Ramsay, highlighted AMD’s strategic advancements in high-performance computing and AI. Additionally, they noted a development that is quickly becoming a high-revenue generator for AMD, which could bring in up to $5 billion.
Indeed, AMD’s MI300 AI accelerator has generated over $5 billion in revenue since its launch a few years ago. The accelerator has been a steady source of revenue alongside other AMD offerings. As a result, AMD shares have risen over the past five years by over 100%. While the stock hasn’t performed too well in the last year, thanks to Nvidia’s dominance, some suggest that over time, the chips could rival Nvidia’s Blackwell technology. If AMD continues to post solid revenue from the MI350 AI chip line, could AMD stock climb as high as Nvidia in the last few years?
On Thursday, AMD launched its updated MI350 line of AI chips and detailed its next-generation MI400 line of GPUs as part of its Advancing AI event. The company also unveiled its AMD Developer Cloud, which gives developers access to the company’s AI processors via its cloud computing infrastructure. Each chip offers 288GB of HBM3E memory, more than the 192GB of memory found in Nvidia’s Blackwell GPU. However, Nvidia pairs two Blackwell GPUs in its GB200 superchip, meaning it actually comes with 384GB of memory. Each chip has its advantages over the other, meaning that both could see continued success amid the ongoing AI technology reign over the next few years.
Also Read: Amazon (AMZN) Boosts Position in AMD: What it Means for Both Stocks
AMD’s stock has struggled over the past year, falling roughly 24% in the past 12 months. Nvidia’s stock rose more than 19% in the same period. Year to date, AMD is off 0.2%, while Nvidia is up 7%. Both stocks suffered back in April amid Trump Tariff concerns. However, with those now beginning to dwindle, AMD and NVDA could see rebounds over the coming months, especially with AI remaining crucial to top tech companies.
At press time, AMD stock is trading at $117.50. It is trading in the middle of its 52-week range and below its 200-day simple moving average. CNN analysts are now bullish on the stock following the BofA conference, rating AMD a 7/10 stock. None of their 55 analysts suggest selling AMD stock, projecting a median price of $125.10 and a high of $200 over the next 12 months.
