Advanced Micro Devices (AMD) stock slipped on Thursday despite the reveal of its Helios rack hardware. This is a next-generation rack solution for artificial intelligence (AI) servers based on Meta Platforms’ (META) Open Rack Wide standard. This server rack will be completely powered by AMD tech, including EPYC CPUs and Instinct 400 graphics processing units (GPUs).
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AMD is betting on its Helios server rack to give it an edge over Nvidia (NVDA) in the AI race. As it stands now, Nvidia dominates the AI sector with its Blackwell and Grace GPUs. However, AMD believes it can challenge that dominance with a server rack that utilizes AMD CPUs and GPUs. The use of both a CPU and GPU from AMD could result in better performance and efficiency.
While AMD has a long way to go before it’s ready to go head-to-head with Nvidia in the AI sector, this Helios server rack could be the beginning of a serious battle between the two companies. That’s doubly true now that AMD has a deal with ChatGPT maker OpenAI (PC:OPAIQ) to provide it with a substantial amount of AI computing power.
AMD Stock Movement Today
AMD stock was down 0.26% on Thursday but remained up 96.13% year-to-date. The shares have also rallied 52.7% over the past 12 months. Much of AMD’s growth can be tied to its AI offerings and the increased demand for them. However, it also offers strong competition against Nvidia and Intel (INTC) in the consumer market with its CPU and GPU offerings.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 29 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $248.49, representing a potential 4.34% upside for the shares.
