AMD Shares Slide 1.5% on Meta's Nvidia GPU Deal; Analysts Warn of AI Chip Delays
AMD shares slipped 1.5% as Meta deployed millions of Nvidia GPUs and CPUs in hyperscale data centers, potentially limiting AMD's AI infrastructure opportunities. Analysts warned of delays in AMD's AI accelerators, while Jim Cramer praised its booming data center CPU business despite share declines this year.
1. Meta's Nvidia GPU Deployment Pressures AMD
Shares fell roughly 1.5% after Meta announced a multiyear expansion of its partnership with Nvidia to deploy millions of Blackwell and Rubin GPUs and Grace CPUs across hyperscale data centers, raising concerns that AMD may lose AI infrastructure contracts as major cloud providers standardize on Nvidia technology.
2. Analysts Warn of AI Accelerator Delays
Market analysts flagged potential delays in AMD’s next-generation AI accelerator shipments, prompting maintained neutral ratings and $220 price targets, and signaling investor caution over AMD’s ability to meet demand amid intensifying competition.
3. Cramer Highlights Data Center CPU Strength
Jim Cramer praised AMD’s booming data center CPU segment, highlighting strong growth in EPYC server processor sales and suggesting that investors may be underestimating its impact on AMD’s overall revenue and profitability despite recent share declines.