AMD unveils new AI accelerators and rack-scale solutions

Published 12/06/2025, 19:38
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SANTA CLARA - Advanced Micro Devices, Inc. (NASDAQ:AMD), a $193.56 billion market cap semiconductor giant with 21.71% revenue growth in the last twelve months, introduced its new Instinct MI350 Series accelerators and previewed its next-generation "Helios" AI rack design at its Advancing AI event on Thursday. According to InvestingPro analysis, AMD maintains its position as a prominent player in the Semiconductors industry, with robust financial health scores and significant growth potential.

The company announced that the MI350 Series GPUs deliver a 4x generation-on-generation AI compute increase and a 35x generational leap in inferencing capabilities. The MI355X variant reportedly generates up to 40% more tokens-per-dollar compared to competing solutions.

AMD also demonstrated its open-standards rack-scale AI infrastructure, which is already being deployed by Oracle Cloud Infrastructure. The company said this infrastructure, featuring MI350 Series accelerators, 5th Gen EPYC processors, and Pensando Pollara NICs, will be broadly available in the second half of 2025.

Looking ahead, AMD previewed its next-generation AI rack called Helios, which will incorporate MI400 Series GPUs expected to deliver up to 10x more performance for inference on Mixture of Experts models compared to the previous generation.

The company announced that seven of the 10 largest model builders and AI companies are running production workloads on Instinct accelerators, including Meta, OpenAI, Microsoft, and xAI. With a strong gross profit margin of 53.58% and healthy current ratio of 2.8, AMD appears well-positioned to support its expanding AI initiatives. For deeper insights into AMD’s financial metrics and 13 additional ProTips, consider exploring InvestingPro’s comprehensive analysis tools.

AMD also released ROCm 7, the latest version of its open-source AI software stack, and announced the broad availability of the AMD Developer Cloud for the global developer community.

In terms of energy efficiency, AMD reported that the Instinct MI350 Series exceeded the company’s five-year goal to improve AI training and high-performance computing node efficiency by 30x, ultimately delivering a 38x improvement. The company set a new 2030 goal to deliver a 20x increase in rack-scale energy efficiency from a 2024 base year.

This information is based on a press release statement from AMD. The company’s stock, which has shown significant volatility with a beta of 1.99, currently trades at a premium to its InvestingPro Fair Value, reflecting market optimism about its AI initiatives. Investors seeking detailed valuation analysis and expert insights can access AMD’s full Pro Research Report, available exclusively on InvestingPro, along with reports for 1,400+ other top US stocks.

In other recent news, Advanced Micro Devices (AMD) has unveiled a new lineup of AI chips, the MI350 and MI400 series, aimed at challenging Nvidia’s dominance in the AI chip market. This development aligns with AMD’s strategy to capture a larger share of the expanding AI sector. The company has also completed its acquisition of ZT Systems, positioning itself to offer comprehensive AI systems similar to Nvidia’s offerings. KeyBanc has maintained its Sector Weight rating on AMD stock, adjusting earnings estimates due to anticipated charges, including a significant write-off of the MI308. Cantor Fitzgerald has raised its price target for AMD to $140, citing optimism around the company’s AI prospects and upcoming product releases. Similarly, Citi has increased its price target to $120, maintaining a Neutral rating, and anticipates AMD to highlight new customer partnerships at its upcoming AI event. Wells Fargo has reiterated an Overweight rating with a $120 price target, noting AMD’s strategic partnership with Sanmina and the focus on rack-scale AI solutions. These recent developments reflect AMD’s efforts to strengthen its position in the AI market and its ongoing strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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