AMD Launches MI350 AI Accelerators, MI400 Expected To Drive Major Growth

At its recent Advancing AI 2025 event, AMD launched the MI350 series of AI accelerators, which are competitive in inference performance for small to medium large language models but are not yet fully competitive with Nvidia's high-end rack-scale solutions. Analysts, including Morgan Stanley's Joseph Moore, emphasize that the real growth potential lies with AMD's upcoming MI400 and MI450 rack-scale products expected in 2026, which could rival Nvidia's Vera Rubin GPUs if successfully delivered. The event featured endorsements from major tech companies such as Meta, Microsoft, OpenAI, and Oracle, lending credibility to AMD's forecast for generating tens of billions in AI revenue, though near-term upside remains modest until MI400 proves itself. Wall Street responded positively with multiple firms reiterating Buy ratings and price targets ranging from $130 to $200, highlighting AMD's aggressive AI roadmap and expanding product ecosystem. AMD's strategy also includes significant mergers and acquisitions, with 25 deals over the past year, and efforts to foster a Neocloud ecosystem to compete with Nvidia. Despite some skepticism about marketing claims and the current competitiveness of MI350, AMD's long-term AI potential is viewed as strong, pending effective execution and the anticipated performance of future products.