Advanced Micro Devices (AMD, Financial) saw its stock price soar nearly 9% following a positive outlook from Piper Sandler analysts regarding its latest product releases. Analysts are optimistic about AMD's graphics processing unit (GPU) business rebounding in the fourth quarter. By then, AMD is expected to have largely accounted for an $800 million charge due to new U.S. licensing requirements for semiconductor exports to China and other countries.
Last week, AMD unveiled its next-generation AI chips, the Instinct MI400 series, along with a full server rack named Helios, capable of connecting thousands of chips. This system is anticipated to be crucial for AI clients, including cloud computing companies and large language model developers.
During an event in San Jose, California, AMD CEO Lisa Su and OpenAI CEO Sam Altman showcased these products. Altman described the offerings as "absolutely incredible." Analysts expressed excitement over the products, particularly the Helios rack, which they believe is vital for the growth of the AMD Instinct series. Piper Sandler raised AMD's target stock price from $125 to $140.
AMD's stock surged to over $126, marking its highest close since early January, before new tariffs were announced by then-President Donald Trump, which had prompted AMD to warn of related charges.
