Advanced Micro Devices (NASDAQ:AMD) revealed its new artificial intelligence (AI) chips, including the Ryzen AI 300 series, Ryzen 9000, and MI325X accelerator, at a trade show in Taipei, yesterday. This reflects AMD’s efforts to compete with the AI chip major Nvidia (NVDA). AMD stock was down 2% in yesterday’s trading session.
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The Ryzen AI 300 chips are designed to power next-gen AI laptops. Moreover, these chips will support laptops equipped with Microsoft’s (MSFT) AI chatbot, Copilot. On the other hand, the Ryzen 9000 series will be used in desktops and is being called “the world’s fastest consumer PC processors,” best suited for gaming and content creation. Both the Ryzen AI 300 and Ryzen 9000 are expected to be launched in July.
In addition, AMD’s MI325X accelerator is expected to boost the memory capacity to 288GB, which is twice as much as NVDA’s H200 and 50% more than Nvidia’s Blackwell chips revealed earlier this year. It should be noted that the accelerator will be made available in the fourth quarter.
The Best Analyst Covering AMD
Interestingly, investors considering AMD stock could follow Piper Sandler analyst Harsh Kumar. He is the best analyst covering the stock (in a one-year timeframe). He boasts an average return of 36.18% per rating and a 91% success rate.
On May 1, Kumar, an analyst ranked among the top 1% of Street stock experts, assigned a Buy rating on the stock, with a price target of $175, suggesting a 7% upside potential. (To watch Kumar’s track record, click here.)
Is AMD Stock a Buy or Sell?
AMD’s efforts to introduce new chips that are well-positioned to compete with those of rivals can help AMD gain market share.
Overall, Wall Street is optimistic about AMD. The stock has a Strong Buy consensus rating based on 30 Buy and six Hold rating assigned in the past three months. Following a year-to-date rally of 11%, the analysts’ average price target on AMD stock of $192.56 implies 17.7% upside potential.
