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]