AMD to power two next-gen supercomputers at Oak Ridge National Lab

SANTA CLARA - AMD (NASDAQ:AMD), a prominent player in the semiconductor industry with a market capitalization of $415.58 billion, will provide technology for two new supercomputers at Oak Ridge National Laboratory (ORNL) as part of a combined $1 billion public-private investment to advance U.S. leadership in artificial intelligence and high-performance computing, according to a press release statement. According to InvestingPro analysis, AMD is currently trading above its Fair Value, reflecting strong investor confidence in its AI initiatives.

The Lux AI supercomputer, powered by AMD Instinct MI355X GPUs, AMD EPYC CPUs, and AMD Pensando networking technologies, will be deployed in early 2026. Developed in collaboration with ORNL, Oracle Cloud Infrastructure, and HPE, Lux is described as the first U.S. "AI Factory" supercomputer for science. This strategic initiative comes as AMD demonstrates robust financial health, with revenue reaching $29.6 billion in the last twelve months and maintaining a healthy current ratio of 2.49.

The second system, Discovery, will feature next-generation AMD EPYC CPUs (codenamed Venice) and AMD Instinct MI430X GPUs specifically engineered for sovereign AI and scientific computing. ORNL is expected to receive Discovery in 2028, with user operations anticipated in 2029.

"We are proud and honored to partner with the Department of Energy and Oak Ridge National Laboratory to accelerate America’s foundation for science and innovation," said Dr. Lisa Su, chair and CEO of AMD.

U.S. Secretary of Energy Chris Wright stated that the systems represent "a new commonsense approach to computing partnerships" that will bring "new capacity online faster than ever before."

Both supercomputers will support the U.S. AI Action Plan by accelerating AI-enabled science and strengthening national competitiveness. The systems are designed to drive breakthroughs in energy, medicine, materials science, and national security research. For investors seeking deeper insights into AMD’s AI strategy and financial outlook, InvestingPro offers comprehensive analysis with 20+ additional ProTips and detailed metrics in its Pro Research Report, available exclusively to subscribers.

The announcement follows ORNL’s deployment of Frontier, the world’s first exascale system. Discovery will build on Frontier’s foundation while offering higher performance, energy efficiency, and AI capabilities.

In other recent news, AMD has finalized the divestiture of ZT Systems’ data center infrastructure manufacturing business to Sanmina. This transaction establishes Sanmina as a preferred manufacturing partner for AMD’s cloud rack and cluster-scale AI solutions. AMD retains the design and customer enablement teams from ZT Systems to support faster deployment of its AI systems. Additionally, UBS has reiterated its Buy rating on AMD, maintaining a price target of $265, citing strong performance in server and client CPU segments. UBS expects AMD’s third-quarter revenue to approach the high end of its $9 billion guidance, projecting data center GPU revenue to hit approximately $1.7 billion.

Meanwhile, Qualcomm has received a Buy rating reiteration from Rosenblatt following its 200MW deployment agreement with HUMAIN. Rosenblatt has set a price target of $225, viewing this development as aligned with Qualcomm’s strategy to diversify end markets. In another development, Cantor Fitzgerald has raised Intel’s price target to $45 from $24.80 while maintaining a Neutral rating. This adjustment follows Intel’s previous addition as a "Tactical Long" by Cantor Fitzgerald.

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