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Shares of Advanced Micro Devices (NASDAQ:AMD) rose about 4% on Monday after Wccftech reported that the company is thinking of increasing the price of its Instinct MI350 AI accelerator to $25,000 from $15,000.
The nearly 70% increase in average selling price is still cheaper than its counterpart product from tech giant Nvidia (NASDAQ:NVDA), the Blackwell B200. The report cited an HSBC analyst note.
AMD did not immediately respond to a request for comment from Seeking Alpha.
The price increase indicates that AMD is seeing demand for its AI products, and it also suggests that such a high increase shows that the company’s quarterly revenue numbers may reflect notable growth, the report added.
In terms of performance, the Instinct MI350 AI accelerator is claimed to rival Nvidia’s Blackwell B200 AI chip, and it has been a leading offering by the company, the report noted.
Following the news, Wells Fargo analysts led by Aaron Rakers reiterated their recent positive preview in which they increased their AMD Data Center graphics processing unit, or GPU, estimates.
The analysts added that the key focus for AMD’s upcoming fiscal second quarter results on Aug. 5 will be the pace/breadth of the company’s now ramping MI355X data center GPUs, which began shipments in June.
“We think most investors have been considering MI355X list pricing into the ~$30k range,” said the analysts.
Rakers and his team noted that AMD has highlighted confidence in returning to year-over-year growth for its GPU revenues in the fiscal third quarter of 2025.
The analysts currently model about $1.65B in the fiscal third quarter of 2025, up slightly year-over-year. The analysts added that the year-over-year growth expectation included AMD’s anticipated nearly $800M second half of 2025 impact from the ban on China-focused MI308X shipping into China, leaving them and investors to incrementally focus on the timing of licensing to resume shipping into China in the second half of 2025.