AMD Stock Dips as CEO Lisa Su Unveils Instinct MI450 Details - What Wall Street Missed

AMD shares take a hit while Lisa Su drops MI450 bombshell

The Chip Revolution No One Saw Coming

AMD's stock took a surprising dip just as CEO Lisa Su confirmed the details of their next-generation Instinct MI450 accelerator. While Wall Street analysts were busy counting pennies, Su dropped the technical equivalent of a nuclear warhead on the AI chip market.

Market Reacts in Typical Short-Sighted Fashion

Traders immediately punished the stock despite Su revealing specifications that could redefine AI processing capabilities. The classic Wall Street move - sell first, ask questions never. Meanwhile, crypto miners are already calculating how many MI450s they can stack in their garage operations.

Technical Firepower Meets Financial Myopia

The Instinct MI450 details suggest AMD isn't just playing catch-up - they're aiming to leapfrog the entire competition. But try explaining quantum-level performance improvements to a hedge fund manager who still thinks blockchain is something you use to secure bicycles.

Another case of revolutionary technology being valued by people who think 'GPU' stands for 'Generally Poor Understanding' of market dynamics.

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While Su has confirmed that the Instinct MI450 GPU will use 2nm tech for its Accelerator CORE Die, rumors claim it won’t be used in other parts of the GPU. Specifically, prominent tech leaker Kepler stated that the GPU’s Active Interposer Die and Media Interface Die will use TSMC’s 3nm tech.

AMD’s MI450 GPU is a highly anticipated product now that it’s announced a new deal with ChatGPT maker OpenAI (PC:OPAIQ). This will have AMD provide OpenAI with MI450 GPUs for use in the company’s AI data centers. The deal also allows OpenAI to take a 10% stake in AMD. Rival GPU maker Nvidia (NVDA) is also partnered with OpenAI, though its Ruby generation GPUs will use 3nm tech.

AMD Stock Movement Today

AMD stock was down 0.67% on Thursday, despite climbing in pre-market trading. Even so, the stock has rallied an incredible 96.01% year-to-date and 43.48% over the past 12 months. Much of these gains have come from the AI boom and the demand it has created for AMD’s products.

Is AMD Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 26 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $237.06, representing a potential 1.26% upside for the shares.