Core Viewpoint - AMD is considering raising the average price of its Instinct MI350 series AI chips from $15,000 to $25,000, indicating strong demand for its AI products and potential significant revenue growth in upcoming quarterly results [1] Group 1: Product and Performance - The Instinct MI350 series AI chips, launched at AMD's Advancing AI conference in June, include MI350X and flagship MI355X, built on TSMC's 3nm process with a new CDNA 4 architecture, integrating up to 185 billion transistors [1] - The MI350 GPU can run models with up to 520 billion parameters, achieving peak performance of 20 PFLOPS in FP4/FP6 precision, which is four times that of the previous MI300X, with a 35-fold increase in inference performance [2] - The MI350 series outperforms NVIDIA's B200 in inference throughput when running the DeepSeek R1 model, showcasing its competitive edge [2] Group 2: Market Outlook and Analyst Predictions - HSBC analysts have expressed optimism about the MI350 series' competitiveness against NVIDIA's Blackwell, raising AMD's target price to $200 and projecting AI chip revenue to reach $15.1 billion by 2026, up from a previous estimate of $9.6 billion [2] - Following the price increase news, Wells Fargo analysts reaffirmed their positive outlook on AMD and raised sales expectations for AMD's data center GPUs [2] - Analysts expect the MI355X to be priced around $30,000 and anticipate a slight year-over-year increase in GPU revenue to approximately $1.65 billion in Q3 of FY2025, despite an estimated $800 million negative impact from export restrictions on the MI308X chip to China [3]

Group 1 - AMD is considering raising the average price of its Instinct MI350 series AI chips from $15,000 to $25,000, indicating strong demand for its AI products [1] - The price increase of 70% still keeps AMD's chips cheaper than NVIDIA's Blackwell B200, while performance is said to be competitive [1][2] - The MI350 series, launched in June, includes MI350X and flagship MI355X chips, built on TSMC's 3nm process with up to 185 billion transistors [1] Group 2 - The MI350 GPU can run models with up to 520 billion parameters, achieving peak performance of 20 PFLOPS, which is four times that of the previous MI300X [2] - HSBC analysts have raised their target price for AMD to $200, forecasting AI chip revenue to reach $15.1 billion by 2026, up from a previous estimate of $9.6 billion [2] - Following the price hike news, Wells Fargo analysts reaffirmed a positive outlook for AMD and increased sales expectations for its data center GPUs [2] Group 3 - Analysts expect the MI355X to be priced around $30,000 and anticipate a year-over-year growth in GPU revenue for AMD in Q3 2025 [3] - The projected GPU revenue for Q3 2025 is approximately $1.65 billion, considering a negative impact of nearly $800 million from export restrictions on the MI308X chip to China [3] - Attention is shifting towards whether the MI308X chip can regain export permissions to the Chinese market in the second half of 2025 [3]