TradingKey - On Thursday, June 12, during the Advancing AI Developer event, AMD unveiled its next-generation artificial intelligence (AI) chip, claiming significant performance advantages over all existing products from rival NVIDIA, and forecasting that the AI chip market will surge to over $500 billion within the next three years.
AMD CEO Lisa Su announced that the new MI350 series of AI chips outperforms NVIDIA’s latest offerings — including the B200 and GB200 — in processing speed. The MI355 chip, which began shipping earlier this month, delivers a 35x performance boost over its predecessor.
Looking ahead, AMD introduced details about the upcoming Instinct MI400 series, set to launch next year. These chips can be integrated into a complete server rack system called Helios, enabling thousands of chips to be bundled together and operate as a single, rack-scale system.
Su emphasized that this marks the first time AMD has designed every component of the rack as a unified system. Additionally, AMD’s chips will be offered at a lower price point than comparable NVIDIA products.
OpenAI CEO Sam Altman revealed that his company is collaborating with AMD on chip development and providing feedback for optimization. OpenAI will adopt AMD’s chips in its systems.
According to IDC, NVIDIA currently dominates the AI chip market with a market share of 85.2%, while AMD holds 14.3%, having steadily worked to expand its presence in recent years.
Despite AMD’s ambitious announcements, some analysts remain skeptical, noting that the newly launched chips are unlikely to immediately shift AMD’s market position.
On Thursday, AMD shares fell 2.18% to close at $118.50. Year-to-date, AMD stock has declined 1.90%, underperforming the S&P 500’s 2.78% gain.
According to TradingKey, the average analyst target price for AMD is $129.18, implying an upside potential of 6.64% from the latest closing price.
Analyst Price Targets for AMD, Source: TradingKey
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