Customers Clamor for MI450 GPU as Earnings Could Swing Shares 8%
Advanced Micro Devices reports customers are eager to deploy its MI450 GPU in data centers, signaling strong AI-driven demand. The company is projected to post $9.88 billion in revenue and $1.27 adjusted EPS next quarter, with options pricing suggesting an up-to-8% share swing to as high as $389.
1. MI450 GPU Demand Building
CEO Lisa Su said customers are anxious to get the MI450 GPU into data centers, underscoring robust AI-driven demand and a strong sales pipeline.
2. Pre-Earnings Projections
The company is expected to report $9.88 billion in revenue and $1.27 adjusted EPS next quarter, with options pricing implying a potential up-to-8% share swing between $331 and $389.
3. Analyst Sentiment and Price Targets
A leading analyst group raised its price target to $375 from $220, and six of nine analysts currently rate the stock a buy, reflecting confidence in further upside.
4. Exposure to SpaceX Infrastructure
AMD’s chips feature in the infrastructure supporting SpaceX’s reusable rockets and AI systems ahead of its IPO, offering potential new revenue streams.