Advanced Micro Devices reportedly has raised the price of its high-end AI chip in a sign of confidence that it can better compete with market leader Nvidia. AMD stock jumped on the news.
South Korean news agency Newsis reported Monday that AMD increased the price of its Instinct MI350 AI accelerator from $15,000 to $25,000. Newsis cited an analyst report from investment bank HSBC.
"AMD's MI350 can now compete with Nvidia's Blackwell B200 in the market," HSBC said, according to the Newsis report. "AMD's AI chip sales next year will be significantly higher than the previous estimate of $9.6 billion, at $15.1 billion."
Even with the 67% price increase, AMD's artificial intelligence chip is still cheaper than Nvidia's counterpart, Wccf Tech said.
AMD did not respond to a request for comment on the reports.
On the stock market today, AMD stock advanced 4.3% to close at 173.66.
Meanwhile, UBS analyst Timothy Arcuri on Monday reiterated his buy rating on AMD stock and raised his price target to 210 from 150.
In a client note, Arcuri cited improving sentiment in AMD stock ahead of the company's fiscal second-quarter earnings report, due on Aug. 5.
AMD stock is on two IBD lists: Big Cap 20 and Tech Leaders.
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