Aanchal Sugandh
4 min read
In This Article:
For the longest time, Nvidia (NVDA) has enjoyed an open runway in the data center and artificial intelligence GPU market.
But on June 12, Advanced Micro Devices (AMD) made it clear that it was no longer content staying in the shadows. In a detailed reveal, the company introduced its upcoming Instinct MI400 series, a new breed of AI chips set to launch next year.
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These chips form the core of a larger vision called Helios, a full server rack capable of connecting thousands of chips into one powerful “rack-scale” system. That architecture puts AMD head-to-head with Nvidia’s Blackwell platform, which links together 72 GPUs in a single configuration.
AMD also drew a line in the sand on inference performance. Its new chips come with more high-speed memory, making it possible to run massive AI models on a single GPU. As anticipation builds, let us see how high this can take the AMD stock.
Advanced Micro Devices (AMD), based in Santa Clara, California, has carved out a formidable presence in the high-performance computing landscape with a market cap of $205.6 billion. AMD delivers one of the industry’s most comprehensive portfolios of advanced processor technologies.
In the last three months alone, AMD’s stock has gained 22.5%, significantly outpacing the broader S&P 500 Index ($SPX), which rose by 5.4% in the same period.
Currently, AMD trades at 40.2 times forward earnings and 8 times its sales. Both metrics sit below the five-year historical average. This signals a potential window for investors looking for exposure to the next wave of computing innovation.
On May 6, Advanced Micro Devices stepped into the earnings spotlight and delivered a performance that raced ahead of Wall Street expectations. In its Q1 2025 results, the company posted revenue of $7.4 billion, marking a 35.9% increase from the same quarter last year and sailing past Wall Street’s forecast of $7.1 billion.
The showstopper in this story was AMD’s data center segment, which pulled in $3.7 billion, registering a 57.2% year-over-year surge. The client and gaming segment brought in $2.9 billion. While the gaming unit struggled under pressure, sliding 29.8% to $647 million, the client business rose sharply, climbing 67.7% to reach $2.3 billion.
