AMD stock up over 9% after new AI chips reveal: Is AMD the breakout investors have been waiting for?
Tired of too many ads?
Remove Ads
Key data:
AMD stock rose 9.1% to $162.67.
Gain followed AI chip event where AMD unveiled Instinct MI325X.
New chips will ship in Q4 2024, with next-gen chips coming in 2025 and 2026.
AMD introduced a full AI GPU roadmap: MI325X → MI350 (2025) → MI400 (2026).
Analyst Hans Mosesmann (Rosenblatt) raised price target to $250 (from $200).
AMD targets a $400B AI chip market, competing with Nvidia.
The rally added $25 billion to AMD's market value in one day.
Stock trading volume spiked over 2x the daily average.
What did AMD announce that got investors so excited?
Tired of too many ads?
Remove Ads
Why is AMD stock price moving so fast right now?
Strong analyst support: Besides Piper Sandler, analysts from Citi, BofA, and Barclays have been increasing their price targets. Citi moved to $121, and BofA hiked its target to $130, citing product momentum and even AMD's $6 billion stock buyback program.
Besides Piper Sandler, analysts from Citi, BofA, and Barclays have been increasing their price targets. Citi moved to $121, and BofA hiked its target to $130, citing product momentum and even AMD's $6 billion stock buyback program. Momentum in AI: Investors are paying close attention to companies that are building chips for AI and data centers. AMD's new lineup is clearly aimed at competing with Nvidia, the current leader in this space.
Investors are paying close attention to companies that are building chips for AI and data centers. AMD's new lineup is clearly aimed at competing with Nvidia, the current leader in this space. Volume and demand: AMD's daily trading volume on June 16 was over 67 million shares, far higher than average. That kind of buying interest often indicates strong belief in future performance.
Is AMD stock still a good buy or is it too late?
According to TipRanks, 35 out of 54 analysts rate AMD as a Buy.
Top-rated TipRanks investor JR Research said, 'Now is a good time to stock up before the momentum builds.'
Can AMD really challenge Nvidia in the AI chip market?
Is AMD stock worth watching?
AMD stock is once again catching Wall Street's attention—and for good reason. On Monday, June 16, AMD shares soared over 8%, closing at $126.72. The jump came right after the company's highly anticipated Advancing AI event in San Jose, where AMD introduced its new generation of AI chips and laid out a detailed roadmap for future growth.This isn't just another short-term rally. With fresh product announcements, big price target hikes from analysts, and a wave of investor excitement, AMD stock seems to be entering a new phase.At the center of this price surge is AMD's unveiling of the Instinct MI325X AI chip, expected later this year, and its plans for the MI350 series in 2025. The company also teased its upcoming MI400 chips that are set to launch in 2026 and will use a new 'Next' architecture designed for high-performance AI computing.AMD also introduced Helios, a rack-scale AI platform that will house its future MI400 accelerators. While this sounds technical, the takeaway is simple: AMD is doubling down on AI, and investors liked what they heard.Analysts responded quickly. Piper Sandler raised its price target from $125 to $140, saying the announcements were "impressive" and could give AMD a serious boost in the competitive AI chip space.That's the big question. AMD stock has climbed about 60% since bottoming out near $78 in April, but it's still down about 30% from its 2023 high of $184.92. This suggests there could be more room to grow, especially if its AI chips gain traction.But there are risks. U.S. chip export rules could cut up to $800 million from future revenue. That's not a small amount, and it could affect margins in Q2 and Q3. Still, most analysts see this as a manageable headwind rather than a deal-breaker.Let's be honest—Nvidia is still the leader in AI chips. But AMD isn't just sitting on the sidelines. Its newer products are starting to show up in major server systems, and its focus on open-source AI platforms makes it a serious player.What AMD lacks in current AI market share, it hopes to make up for in scalability and cost efficiency. If its MI325X and MI350 chips can compete on performance and price, then AMD could carve out a significant share of the AI market in 2025 and beyond.Absolutely. Whether you're a long-term investor or just tracking short-term gains, AMD stock deserves a spot on your radar right now. Between its product roadmap, analyst upgrades, and strong investor interest, this isn't just a hype-driven bump—it's a shift toward long-term AI growth.That said, keep an eye on chip export regulations and future earnings. The next few quarters will tell us how well AMD can execute on these bold AI plans.For now, it's clear: AMD is stepping up, and the market is watching.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
18 hours ago
- Indian Express
Humanoid robot seen running near Dubai's Emirates Tower; triggers viral reactions: ‘Where is the robot going? Looking for a job?'
A video showing a humanoid robot casually jogging across a street in Dubai has sparked both laughter and awe across social media. Shared originally by Instagram user Nazish Khan with the caption, 'Welcome to the future,' the clip quickly spread like wildfire, racking up views and sparking a frenzy of memes and jokes online. Shot from inside a car, the video captures the robot crossing a street near Emirates Tower, trailed closely by a man, likely its operator, who holds a device in his hand, prompting some users to speculate about remote control involvement. A post shared by Nazish Khan (@nazish8) While the scene itself is surreal, it's the comments that really stole the show. One user said, 'The day is not far when u break the rules and robots will slap you on road.' Another wrote, 'He must have fine still he doesn't follow the zebra crossing,' mocking the robot's lack of traffic etiquette. Another person commented, 'Is this working with remote control. What is in that person's hand?' A fourth individual wrote, 'Even the robot searching for air conditioning.' 'Rushing to pee? Looking for a job? Where is the robot going?' wrote a fifth person. Nvidia, the tech company behind these advanced machines, describes them as 'general-purpose, bipedal robots modeled after the human form factor.' Built to function alongside humans, they're capable of handling a range of tasks like lifting, unboxing, and moving objects, making them a potential game-changer in workplaces. Meanwhile, on a more unsettling note, another video from China is stirring a different kind of buzz. In footage shared by NEXTA TV, a Unitree H1 humanoid robot is seen strapped to a crane during what appears to be a routine test. Things take a dramatic turn when the robot begins flailing uncontrollably, knocking over equipment and startling the workers nearby.
Time of India
20 hours ago
- Time of India
US tariffs to hurt textile, apparel exporters; govt should come to rescue: CITI
The 25 per cent tariff announced by the US will hurt the textile and apparel exports from India and the government should come to the aid of exporters, said the Confederation of Indian Textile Industry (CITI) on Friday. US President Donald Trump has announced imposition of 25 per cent tariff on Indian exports which will come into effect from August 7. The CITI suggested that the government should facilitate the availability of raw material for the sector at internationally competitive rates to enable the domestic exporters compete with international peers. The decision of the US to substantially reduce tariffs for competing countries like Bangladesh will compound the difficulties for India's textile and apparel exporters, CITI Chairman Rakesh Mehra said. The new US tariff for Bangladesh is 20 per cent, Indonesia and Cambodia 19 per cent each and Vietnam 20 per cent. Currently, China is the biggest exporter of textiles and apparel items to the US, followed by Vietnam, India, and Bangladesh. The US is India's largest market for textile and apparel exports. During January-May 2025, US imports of textile and apparel from India were valued at USD 4.59 billion, a rise of more than 13 per cent compared to the same period last year when the figure stood at USD 4.05 billion. India has set a target of achieving textile exports worth USD 100 billion by 2030. Mehra said CITI looks forward to the proposed bilateral trade agreement (BTA) between India and the US being in place soon. "We totally agree with the government that India should always protect its national interests while signing any trade deal to ensure that it is fair, balanced, and equitable for all the parties involved in the agreement," he added.
Time of India
21 hours ago
- Time of India
Alphabet's CapitalG, Nvidia in talks to fund Vast Data at up to $30 billion valuation
Alphabet 's growth-stage venture arm CapitalG and Nvidia are in talks to invest in artificial intelligence infrastructure provider Vast Data in a new funding round that could value the startup as high as $30 billion, two sources said. The startup is raising several billion dollars from tech giants, private equity and venture capital investors, which could make it one of the most valuable AI startups, the two sources with knowledge of the matter said, as companies building the backbone for the AI boom come into sharper focus. CapitalG and existing backer Nvidia are in discussions to participate in the round, which could close in the next few weeks, according to the sources, who requested anonymity to speak on private matters. New York-headquartered Vast Data develops storage technology specifically designed for large AI data centers, enabling efficient data movement between graphics processors (GPUs) made by the likes of Nvidia. Its clients include companies such as Elon Musk's xAI and CoreWeave, and its value in the AI supply chain makes it an attractive acquisition target, bankers and analysts said. Nvidia declined to comment, while Vast Data and CapitalG did not respond to requests for comment. TechCrunch earlier reported Vast Data's fundraising efforts, but the valuation of up to $30 billion and the expected involvement of CapitalG and Nvidia have not been reported previously. Vast Data CEO Renen Halak has said the company is free cash flow positive. The company earned $200 million in annual recurring revenue (ARR) by January 2025, with a strong backlog of orders and projections to grow ARR to $600 million next year, according to a separate source familiar with its financials. The company has raised roughly $380 million to date, and its last funding round in 2023 valued it at $9.1 billion. Vast Data has said it would consider an initial public offering at the right time. While no listing is imminent, according to another source familiar with the matter, investors and bankers view the data infrastructure firm as a likely IPO candidate. Vast Data last year hired Amy Shapero, its first chief financial officer, who was previously in the same role at publicly listed ecommerce giant Shopify, in a move that could signal preparations for an IPO. Mergers and acquisitions activity has also been heating up in the sector, and Nvidia has been acquiring companies that add complementary software and hardware products beyond its flagship GPUs. In 2020, it bought networking chip and cable maker Mellanox, which has helped Nvidia build integrated systems featuring its latest Blackwell chips. It has also acquired software companies such as Run:ai, which helps engineers optimize data center AI hardware. Vast Data's storage architecture is based on a system of flash storage devices and other off-the-shelf hardware, combined with its specialized software for data access and movement. The company says adopting its technology can reduce the cost of building and running large AI models. Several early-stage companies, such as Weka and DDN, are pursuing similar efforts, but analysts and industry executives say Vast Data's technology is more mature than that of its rivals.
