AMD has signed a multi-year chip supply deal with OpenAI that could generate tens of billions in revenue for the chipmaker, helping accelerate its momentum in the AI industry. AMD has agreed to supply 6 gigawatts of compute capacity to OpenAI — enough to power up to 4.5 million homes — across multiple generations of its Instinct GPUs, starting with the Instinct MI450 GPU. OpenAI will receive the first gigawatt of capacity in the second half of 2026, when the new chip is scheduled for deployment.  AMD claim ...

AMD points out that its MI350 AI processor platform has been selected for deployment by multiple cloud giants, including Oracle , OpenAI, and Microsoft , among others. Oracle, for instance, plans to deploy 130,000 of AMD's MI355X GPUs in a data center cluster for both AI training and inference. The good part is that AMD's MI350 GPUs are equipped with 288 gigabytes (GB) of HBM as compared to 256 GB on the MI325X GPU.AI chip leader Nvidia is already using Micron's HBM in its Blackwell chip platform. Even bett ...

Core Viewpoint - AMD is expected to report strong revenue growth driven by data center sales, but adjusted net profit is projected to decline significantly due to export restrictions to China and other factors [1] Group 1: Financial Performance - AMD's Q2 revenue is forecasted to reach $7.43 billion, a 27% year-over-year increase, while adjusted net profit may drop from $1.26 billion ($0.69 per share) to $796.6 million ($0.48 per share) [1] - The stock price has risen over 40% this year, closing around $172, with analysts maintaining a cautiously optimistic outlook [1] Group 2: Market Dynamics - AMD plans to increase the price of its Instinct MI350 AI accelerator from $15,000 to $25,000, indicating strong demand for AI products and a potential shift in pricing strategy [2] - AMD's market share in the server CPU segment has reached one-third, with projections suggesting it could exceed 40% by 2026 [2][3] Group 3: Competitive Landscape - AMD faces strong competition from Arm architecture, which has gained a 11.9% share in the x86 market, but AMD's client CPU demand is increasing [3] - If Intel's market share continues to decline, AMD could capture over 30% of the CPU market by 2026, up from less than 20% in 2023 [3] Group 4: Export License and AI Strategy - The U.S. export ban on MI308 chips led to an $800 million impairment for AMD, but the recent suspension of the ban has positively impacted the stock price [4][6] - AMD's AI strategy is bolstered by partnerships with major companies, including a significant contract with Oracle for deploying MI355X GPU clusters [6]

Core Viewpoint - AMD is expected to report strong revenue growth driven by data center sales, but adjusted net profit is projected to decline significantly due to export restrictions to China and pricing strategies [1][2]. Group 1: Financial Performance - AMD's Q2 revenue is anticipated to reach $7.43 billion, a 27% year-over-year increase, while adjusted net profit may drop from $1.26 billion ($0.69 per share) to $796.6 million ($0.48 per share) [1]. - The stock price has risen over 40% this year, closing around $172, with analysts maintaining a cautiously optimistic outlook [1]. Group 2: Market Dynamics - AMD plans to increase the price of its Instinct MI350 AI accelerator from $15,000 to $25,000, indicating strong demand for AI products and a potential shift in pricing strategy [2]. - AMD's server CPU market share has grown to one-third, while Intel's share has decreased to 63%, with projections suggesting AMD could capture over 40% of the server CPU market by 2026 [2][3]. Group 3: Competitive Landscape - AMD faces strong competition from Arm architecture, which has gained a market share of 11.9% in the x86 market [3]. - The company is expected to benefit from the resumption of MI308 chip exports to China, which had previously been halted, potentially leading to a significant rebound in sales [4][6]. Group 4: Strategic Partnerships and Developments - AMD has secured contracts with major clients, including Oracle, and has seen increased adoption of its Instinct chips among top AI companies [6]. - The MI355X GPU is positioned to compete effectively against Nvidia's offerings, with significant improvements in memory bandwidth and processing power [6].