Rumor has it that the MI350 series AI chip may increase in price by 70% AMD (AMD.US) stock price will rise in response

The Zhitong Finance App learned that AMD's stock price closed up 4.32% on Monday after reports that AMD (AMD.US) is considering raising the average price of its Instinct MI350 series AI chips from $15,000 to $25,000.

The report said that despite a significant increase of 70%, it is still cheaper than the Blackwell B200, a similar product from Nvidia (NVDA.US). In terms of performance, the Instinct Mi350 series AI chip is said to be comparable to Nvidia's Blackwell B200 AI chip, and has always been one of AMD's main products. The report pointed out that this price increase indicates strong demand for AMD's AI products, and suggests that such a sharp price increase may also mean that the company's quarterly revenue data will show significant growth.

AMD unveiled the Instinct MI350 series of AI chips at the Promised AI Conference in June. This series of chips includes the MI350X and the flagship MI355X, which integrates up to 185 billion transistors based on TSMC's new CDNA 4 architecture based on TSMC's 3-nm process nodes. The main difference between these two chips is the different cooling method. The former uses air cooling, while the latter uses more advanced liquid cooling. The new chip supports the latest FP6 and FP4 artificial intelligence data types and is equipped with an extremely large HBM3e memory.

According to AMD, a single MI350 GPU can run large-scale models with up to 520 billion parameters, demonstrating its strong ability in AI training and inference. The peak computing power of the MI350 series reached 20 PFLOPS with FP4/FP6 accuracy, which is 4 times that of the previous MI300X generation, and its inference performance has increased 35 times. When running the DeepSeek R1 model, the MI350 series surpassed the Nvidia B200 in inference throughput, showing strong competitiveness.

It is worth mentioning that HSBC analysts have previously expressed optimism that AMD's Mi350 series AI chips have the ability to compete with Nvidia Blackwell, and raised their target price for AMD to $200. HSBC also expects AMD's revenue from AI chips to reach US$15.1 billion in 2026, a significant increase from the previous estimate of US$9.6 billion.

Following news of the price increase, the team led by Wells Fargo analyst Aaron Rakers reiterated their recent positive outlook on AMD and raised sales expectations for AMD data center GPUs. Analysts pointed out that AMD will release its earnings report on August 5. At that time, investors' focus will be on the shipping speed and coverage of the company's MI355X data center GPU. Shipments of this new product began in June.

“We think most investors expect the MI355X to be listed at around $30,000,” the analyst said. Analysts pointed out that AMD has expressed confidence that it will soon resume year-on-year growth in GPU revenue in the third quarter of fiscal year 2025.

Analysts currently expect AMD's GPU revenue to reach about US$1.65 billion in the third quarter of fiscal year 2025, a slight increase over the previous year. Analysts added that this year-on-year growth forecast has taken into account the negative impact of AMD's nearly 800 million US dollars in the second half of 2025 due to the ban on the export of MI308X chips to China. As a result, the current focus of analysts and investors has gradually turned to whether the MI308X chip can regain shipping licenses to the Chinese market in the second half of 2025.