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AMD has had some successes recently in reversing the negative perception around the supposed inferiority of its AI GPU offerings in relation to NVIDIA's, which continue to reign as the industry standard. However, one Wall Street analyst remains decidedly cautious on AMD's near-term prospects, recommending a wait-and-see approach for now.
To wit, Truist Securities analyst William Stein has reiterated a 'Hold' rating on AMD shares, replete with a stock price target of $111 per share, which corresponds to a downside potential of around 20 percent relative to the current share price of ~$137.70.
Stein alludes to the ongoing debate on whether AMD customers are only "buying to stimulate competition and price-check NVDA," or genuinely prefer AMD's technology, to declare that he prefers the former thesis.
Stein also clarified AMD's recent AWS-related controversy, where the logo of Amazon's cloud business first appeared and then mysteriously disappeared from the chipmaker's list of customers. As per Stein's discussions with AMD's management, Amazon would prefer to announce a tie-up with AMD at its own events, and not via the appearance of a mere logo within AMD literature.
Critically, Stein's channel checks indicate a "significant inventory build" for AMD, which is "difficult to explain," as per the analyst's admission.
Given the breadth of uncertainty surrounding AMD's AI GPU business at the moment, the Truist analyst has chosen not to express a "strong view" as to whether AMD's upcoming quarterly earnings would constitute a positive or negative catalyst.
As we recently noted in a dedicated post, AMD has now officially unveiled its MI350 series GPUs, which are based on its 4th-gen Instinct architecture and will become available in the third quarter of 2025. According to AMD, these GPUs are capable of delivering a 4x increase in AI compute power and a 35x increase in inferencing capacity.
The company has also launched the 7th iteration of the ROCm, an open-source platform that can be used to tweak the performance of AMD's GPUs. The chipmaker claims ROCm 7 delivers an average of 3.5x and 3x performance improvement in inference and training, respectively, over its previous iteration.
AMD's Helios AI rack solution, which combines MI400 GPUs with Zen-6-based Venice CPUs and Vulcano NICs, is now expected to launch in 2026.
Finally, AMD has also teased the successor to Helios, which will launch in 2027 and leverage MI500 GPUs, Verano CPUs, and Vulcano NICs.
The launch of MI350 GPUs in Q3 is expected to boost AMD's top-line metric for the second half of the year, with Cantor Fitzgerald analyst, C.J. Muse, now expecting AMD to earn around $6 billion in AI revenues in H2 2025.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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