Confronting Nvidia! AMD's Analyst Day is approaching for the first time in three years, with the MI400 series becoming the market focus

AMD is expected to detail its artificial intelligence chip and system business plans at its Analyst Day, particularly the planning for the MI400 series AI chips, as the market closely watches whether it can expand its share in the AI chip market dominated by Nvidia.

On November 11, it was reported that AMD will hold its first Analyst Day event in three years at 2 AM Beijing time on Wednesday, where it is expected to announce detailed plans for its AI chip and system business. The chip designer is trying to rapidly expand its business in the AI market and compete with Nvidia, which dominates the data center chip sector.

Market focus is on AMD's upcoming next-generation MI400 series AI chips, which are planned for release in 2026 and will include multiple variants aimed at scientific applications and generative AI. AMD also plans to launch a complete server rack solution, similar to Nvidia's GB200 NVL72 product.

Analysts expect AMD to update its financial targets and market outlook. The company's stock price rose about 5% to around $244 on Monday, with a cumulative increase of about 100% this year. Wall Street analysts remain optimistic about the stock, with 7 out of 10 analysts giving it a "buy" rating.

According to an article from Wall Street Journal, AMD's revenue forecast for the fourth quarter exceeded Wall Street expectations last week, with AI chip demand bringing optimistic expectations to the company's management. Previously, AMD signed a multi-year agreement with OpenAI, which is expected to bring in over $100 billion in additional revenue over four years.

MI400 Chip Series Aiming for 2026 Release

AMD's next-generation MI400 series AI chips have become a key highlight of this Analyst Day. It is reported that the series is planned for release in 2026 and will include multiple variants aimed at scientific applications and generative AI.

In addition to the MI400 chips, AMD also plans to launch a complete server rack solution. This product strategy directly competes with Nvidia's GB200 NVL72 product, demonstrating AMD's ambitions in the AI infrastructure market.

As is customary, heads of AMD's various business units will present a series of forecasts and financial expectations for the coming years. In addition to AI chips, the company will also discuss its PC and video game chip business as well as its programmable chip division.

Analysts Optimistic About Financial Target Upside

Analysts from Bank of America, Citigroup, and Jefferies have stated that they will closely monitor AMD's updated outlook and financial targets. Analysts believe that if AMD raises its overall addressable market size expectations due to surging AI demand, it could help boost investor confidence in the stock According to data compiled by Visible Alpha, among the 10 Wall Street analysts currently covering AMD, 7 have given a "buy" rating and 3 have a neutral rating. The average target price set by analysts is approximately $269, indicating nearly a 10% upside from Monday's closing price.

Since the beginning of this year, AMD's stock price has nearly doubled, with the recent surge primarily driven by a series of large AI orders, including a partnership with OpenAI, the maker of ChatGPT. The gains on Monday were partly fueled by optimism surrounding a potential agreement in Congress to end the U.S. government shutdown, which boosted the overall market.

The multi-year agreement signed between AMD and OpenAI is expected to generate over $100 billion in additional revenue over four years, with this income coming from OpenAI and other clients. As part of the agreement, OpenAI will receive warrants to purchase up to 10% of AMD's shares.

Analysts point out that this collaboration is significant for AMD. Although the company has performed strongly in the data center market, it has not yet achieved the same excess returns as its competitor NVIDIA during the AI spending boom. NVIDIA currently dominates the data center AI chip market, with its market share continuing to expand.

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