Advanced Micro Devices (AMD) stock rallied on Monday alongside reports of a price increase for its Instinct MI350 AI chips. These are special graphics processing units (GPUs) made by AMD for use in artificial intelligence (AI) applications. The latest reports claim AMD will raise the price of these GPUs to $25,000 per unit.
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To put that in perspective, the price for an Instinct MI350 AI GPU prior to this was $15,000. That means AMD will boost the price by $10,000, or roughly 70%. Even so, it’s still much cheaper than rival Nvidia’s (NVDA) Blackwell B200 AI chip, which starts at $30,000.
According to the latest reports, AMD will increase the price of its Instinct MI350 AI chips to match their performance value. The company believes it has reached a point where the Instinct MI350 AI chips are comparable to Nvidia’s Blackwell B200 AI chips. Even so, it will keep the price below Nvidia’s offerings to attract buyers, a strategy it also employs in sales of its consumer-grade GPUs.
AMD Stock Movement Today
AMD stock was up 4.34% on Monday, extending a 43.63% year-to-date rally and its 19.12% gain over the past 12 months.
Investors will also note that AMD stock received a price target increase from UBS analysts. The firm raised its price target for the shares to $210 from $150 and maintained a Buy rating. The UBS analyst argued AMD is set for strong Q2 performance due to its PC and server operations. AMD will report earnings after markets close on Aug. 5.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 26 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $145.90, representing a potential 16.08% downside for the shares.
