AMD CEO Lisa Su shares the company’s vision for advancing AI.
Image Credit: AMD
Shares of Advanced Micro Devices increased by almost 10% on Monday after analysts from Piper Sandler raised their price target for the stock due to positive expectations from AMD’s recent product launch.
The analysts predict a recovery in AMD’s graphics processing unit (GPU) sales in the fourth quarter. They believe this will happen once the company has handled the majority of the $800 million charges linked to a new U.S. export license requirement for semiconductors to China and other nations.
Recently, AMD introduced its next-generation AI chips, the Instinct MI400 series. A key feature is a complete server rack named Helios that allows for the connection of thousands of these chips. This system is anticipated to be crucial for AI clients, including cloud providers and large language model developers.
During an event in San Jose, California, AMD CEO Lisa Su showcased these products alongside OpenAI CEO Sam Altman, who remarked that they sounded “totally crazy.”
“Overall, we are excited about the new products presented at the AMD event this week, especially the Helios rack, which we believe is essential for the growth of AMD Instinct,” the analysts noted in their report.
Piper Sandler adjusted its price prediction for AMD’s shares from $125 to $140.
The stock rose above $127 on Monday, marking its highest point since January 6, prior to President Donald Trump’s announcement of significant tariffs and AMD’s warning about additional charges related to chip controls.
