Shares of Advanced Micro Devices (AMD 0.79%) jumped 5.4% Wednesday. The chip maker and closest competitor of rival Nvidia saw its stock rise after a research note indicated Nvidia may decide to delay its upcoming Rubin chips in order to better compete with AMD's next-generation AI offering.
NASDAQ: AMD
Key Data Points
AMD's MI450 is a behemoth
Fubon Research analyst Sherman Shang released a note indicating that Nvidia may delay its next-generation Rubin series chips, originally expected to enter mass production in the third quarter of 2026. The company is reportedly redesigning the chip to better position it against AMD's upcoming MI450.
The MI450 will be part of AMD's MI400 series, its first rack-scale AI server platform with 72 processors. While AMD's current AI lineup has had minimal impact on Nvidia's dominance with Blackwell chips, the MI450 could make it a more formidable rival.
Though the company is an Nvidia partner and uses Nvidia chips, CoreWeave CEO Michael Intrator's comment from the company's recent earnings call that AI server demand is "insatiable" is giving AMD investors hope that demand will still be strong by the time AMD can release the MI400 series.
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AMD has an opening
Although Nvidia continues to dominate the uber-lucrative AI chip market, it looks like AMD could have more upside if it can begin to truly compete on a technical level with Nvidia. However, it's important to realize that Nvidia's moat includes much more than its technical leadership; the company's CUDA platform makes switching from the Nvidia ecosystem a difficult and costly task. Investors in AMD will have to see how things turn out.
