Advanced Micro Devices (AMD), whose stock price has just recorded its largest monthly increase in 25 years, is attracting much attention for its upcoming financial report on November 4 and its press conference on November 11.
MarketWatch reported on the 2nd that UBS analyst Timothy Arcuri pointed out in a report that although the agreement signed between AMD and OpenAI focuses on next-generation AI chips, the current MI355X product line still requires attention.
"After completing the initial tool configuration in the second half of the year, many customers seem to have decided to postpone the purchase of MI355X and wait for the MI455 cabinet next year (2026). Although this has a small impact, given the recent surge in AMD's stock price after signing the OpenAI agreement, this is an issue we will consider."
Arcuri is also interested in how customers view AMD graphics processors (GPUs) compared to Broadcom application specific integrated circuits (ASICs). He pointed out that companies are starting to look for suppliers other than NVIDIA (Nvidia Corp.), but when looking for alternatives to NVIDIA GPUs, they seem to prefer ASICs.
However, Bernstein analyst Stacy Rasgon is optimistic that AMD’s prospects are promising. Even if the Q4 AI outlook is not as good as Wall Street’s expectations, no one may care.
According to FactSet statistics, analysts generally predict that AMD’s Q3 revenue will reach US$8.8 billion and industry earnings per share will reach US$1.17; Q4 revenue and industry earnings per share are expected to reach US$9.2 billion and US$1.32.
It is worth noting that AMD is scheduled to hold a Dhamma talk on November 11. Arcuri believes AMD may be holding back big news until then.
AMD ended up slightly up 0.5% on October 31, closing at US$256.12; it soared 58.3% in October, the largest single-day increase since January 2001, and the third highest in history.
Further reading: Enter into strategic cooperation with OpenAI! MI450 will be deployed in the second half of next year, AMD surges 25% before the market opens Alliance with OpenAI, market recognition of GPU ecosystem, AMD’s share will increase to over double digits AMD AI SOLUTIONS DAY flexes its muscles and demonstrates its comprehensive AI solution layout to lead the open ecosystem