Why is AMD's stock price soaring?
It is expected that the MI300 will perform very well, with sales expected to exceed USD 4 billion this year
After Piper Sandler analyst Harsh Kumar rated the company as "top pick" and maintained a buy rating on the stock, shares of Advanced Micro Devices (NASDAQ: AMD) rose by 7.8% in pre-market trading.
The analyst cited reasons for optimism in the second half of this year, stating, "Currently, the MI300 is performing very well, with sales expected to exceed $4 billion this year..."
Harsh continued, "AMD has a series of new chips set to launch later this year and in 2025 to support the MI300. Firstly, the MI325 is expected to launch later this year, followed by the MI350 in 2025. Finally, we anticipate the MI400 to launch in 2026. We note that both the MI325 and 350 will feature the next-generation HBM3E memory. The MI350 will also adopt CDNA4 and the 3nm process node, competing with the Blackwell architecture, while the MI400 is expected to compete with Rubin. Overall, AMD currently has over 100 customers using the MI300, with key customers including Microsoft, Meta, and Oracle."
Source: Kayode Omotosho.