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Key Takeaways
- AMD shares moved higher in premarket trading Monday after the chipmaker unveiled its latest AI processors.
- The company introduced the MI325X accelerator along with the MI350 and MI400 families of chips, which the company expects to release over the next two years.
- AMD continues to build its market share as tech giants beef up their AI infrastructure spending to power complex applications and language models built on the technology.
- Monitor the $133 level, an area on the chart where the AMD shares find support from an ascending triangle’s top trendline that closely aligns with the 50-week moving average.
AMD (AMD) shares moved higher in premarket trading Monday after the chipmaker provided details about its newest artificial intelligence (AI) processors and discussed plans to develop AI chips in the coming years.
At the Computex technology trade show taking place this week in Taipei, AMD CEO Lisa Su unveiled the MI325X accelerator, which she expects the chipmaker to have ready for delivery in the fourth quarter of this year.
The company, which like AI darling Nvidia (NVDA) is aiming for a yearly product release cycle, also revealed its next generation family of chips—branded MI350—that it expects to reach customers in 2025, noting their design will feature new chip architecture.
AI is AMD’s Top Priority
AMD said it anticipates the MI350 to perform 35 times better in computing generative AI responses compared to its MI300 AI chips, which were launched late last year.
In addition, the chipmaker introduced its MI400 series slated for release in 2026, adding that the chips will be built on architecture called “Next.”
“AI is clearly our number one priority as a company and we have really harnessed all of the development capability within the company to do that,” Su told reporters at the conference, Reuters reported.
AMD Continues to Build AI Chip Market Share
While AI behemoth Nvidia dominates around 80% of the AI chip market, AMD continues to build market share as tech giants beef up their AI infrastructure spending to power complex applications and language models built on the technology.
Last week, Microsoft (MSFT) said it was using AMD Instinct graphics processing units (GPUs) to power its Copilot AI models, prompting investment bank Morgan Stanley to project that AMD’s AI chip sales could top $4 billion this year, matching the company’s target.
Monitor This Chart Level Amid Further Downside
Taking a look at the weekly chart, AMD shares broke above a 22-month ascending triangle in December last year before topping out in early March. More recently, the stock’s prior all-time high at $164.46 has provided a level of support during a steep retracement, though trading volumes remain below average compared to earlier this year, indicating weakening momentum.
Amid further downside, investors should monitor the $133 level, an area on the chart where the price may find support from the triangle’s top trendline that closely aligns with the 50-week moving average (MA). A failure to hold this key level could see the shares revisit lower support near the 200-week MA, currently sitting at $104.73.
AMD shares were up 1.4% at $169.30 at around around 7:30 a.m. ET.
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