Baird uncovers recent MI300X order cut at AMD from hyperscaler

Baird believes AMD‘s (AMD) MI300X orders have been cut by a U.S. hyperscaler recently. The firm says the magnitude of the initial order suggests it was a multi-year agreement, but it does not know whether the cut is due to market share shift or the hyperscaler scaling down to numbers more in line with shipment expectations. Baird notes that Nvidia (NVDA) was subject to order reductions late last year associated with a hyperscaler delaying H100 orders waiting to ramp Grace-based architectures, with capacity orders too high to begin with. The firm, however, continues to believe there is “comfortable upside” in AMD’s artificial intelligence revenue guidance for this year, based on high-bandwidth memory order visibility. It keeps an Outperform rating on the shares with a $200 price target.