- AMD expects its Helios rack-scale platform to generate billions of dollars in its first full shipping quarter, with the company’s AI business projected to more than double in 2027.
- Former AMD executive Patrick Moorhead said NVIDIA is leveraging its larger balance sheet to counter AMD’s AI advances, a playbook similar to Intel’s historical strategy against AMD.
- Morningstar maintained its $530 fair value estimate on AMD, implying 12% upside, but labeled the stock a ‘hold’ within ‘3-star’ territory.
Former AMD executive Patrick Moorhead said on social media that Nvidia is leveraging its larger balance sheet and more resources to counter AMD’s AI advances, comparing the rivalry with AMD’s historic fight against Intel. “We gained on product, Intel would add to their stack,” Moorhead said, adding that Intel’s eventual decline came when its manufacturing technology and product designs weakened simultaneously.
Meanwhile, AMD is challenging Nvidia with Helios, a rack-scale platform combining 72 Instinct MI455X accelerators with EPYC processors and ROCm software. Speaking at a KeyBanc Capital Markets forum, AMD executive Matt Ramsay said Helios components will begin shipping to partners in September, with revenue ramping sharply thereafter. “We’re going to go from a standing start to billions of dollars of revenue in the first quarter that it’s shipping for the full quarter,” Ramsay said, adding that AMD’s AI business should “double and a good bit more” in 2027.
OpenAI has entered a multi-gigawatt commitment, while Meta has committed to one gigawatt of Helios capacity. Anthropic plans to deploy up to two gigawatts, with the first targeted for the first half of 2027.
Morningstar expects Helios sales to begin in the fourth quarter and projects AMD’s server CPU business to grow about 70% in 2027. The firm maintained its $530 fair-value estimate, implying a 12% upside from AMD’s current price, but kept the stock in ‘3-star’ territory and called it a ‘hold.’
AMD stock rose 1% on Tuesday to end at $474.32, jumping 175% over the past year.
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