Advanced Micro Devices (AMD) is considering development of new discrete neural processing units (NPUs) that would help power artificial intelligence (AI) applications. These chips would be similar to its standalone graphics processing units (GPUs) that are already found in many PCs.
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AMD Client CPU Business Head Rahul Tikoo confirmed that the semiconductor company is in talks with customers about the potential use cases for NPUs. This includes those who need additional computing power for AI applications. This could open the way for a new source of revenue for AMD with discrete NPUs.
Rival Nvidia (NVDA) relies on its GPUs to power AI applications. This led to it dominating the AI GPU market. However, AMD’s discrete NPUs could appeal to consumers who don’t need as much power as what’s provided by Nvidia’s AI GPUs.
AMD Stock Movement Today
AMD stock slipped 0.16% on Thursday, but remained up 48.37% year-to-date and 35.44% over the past 12 months. While AMD has struggled to break Nvidia’s firm grip on the AI market, recent CPU and GPU efforts have started to bear fruit.
AMD stock also has a catalyst on the horizon. The company will report its Q2 2025 results after markets close on Aug. 5, 2025. Depending on how the company performs, this could raise or lower AMD shares.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 24 Buy, 10 Hold, and a single Sell rating over the past three months. With that comes an average AMD stock price target of $156.47, representing a potential 12.68% downside for the shares.
