Morgan Stanley: AMD’s MI400 AI Chips Could Dominate the Market—Here’s Why
AMD’s next-gen AI accelerators are poised to shake up the industry—and Wall Street’s taking notice.
The Big Bet: Morgan Stanley analysts are doubling down on AMD’s MI400 series, calling it a potential ''game-changer'' in the cutthroat AI hardware race. No vague promises—just cold, hard performance metrics that could leave competitors scrambling.
Why It Matters: With AI workloads exploding, the MI400’s rumored specs (kept under wraps, naturally) might finally give Nvidia a run for its money. Because nothing motivates innovation like the smell of missed revenue targets.
The Bottom Line: If AMD delivers, we’re looking at a tectonic shift in data center economics. And if not? Well, there’s always another ''next big thing'' to hype—this is tech, after all.
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Interestingly, AMD’s event featured testimonials from companies like Meta (META), Oracle (ORCL), OpenAI, Microsoft (MSFT), Cohere, and HUMAIN. Moore said that although these comments were positive, they didn’t change the overall investment story. However, AMD’s preview of its MI400 chips and rack-scale architecture suggested that they could match Nvidia’s (NVDA) Vera Rubin line. In addition, the analyst highlighted that OpenAI CEO Sam Altman’s appearance was a key moment that supports AMD’s forecast of generating “tens of billions” in annual AI revenue.
While the event didn’t bring major hardware surprises, AMD pointed to the 25 acquisitions and investments it made over the past year, which, according to Moore, shows how resourceful AMD is. Still, Moore added that while AMD’s long-term AI potential is strong, current products don’t fully support that view yet, and that strong execution will be critical.
Is AMD a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on AMD stock based on 22 Buys, 11 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMD price target of $129.41 per share implies 10.6% upside potential.
