TLDR
- AMD stock dropped up to 6% on Friday following rumors that its MI450-series AI accelerators might be delayed
- Wells Fargo analyst Aaron Rakers disputed the delay claims, stating AMD’s development on TSMC’s 2nm process remains on schedule
- AMD has already completed tape-out and shipped Venice EPYC processor samples using the same process technology as the MI450-series
- Volume production of the MI450-series is still expected to begin in the second half of 2026, with major shipments in Q4 to customers like OpenAI and Oracle
- Analysts project AMD’s revenue could nearly double from $25 billion in 2024 to $62 billion by 2027, driven by data center GPU demand
AMD shares tumbled Friday morning after reports surfaced claiming delays in the company’s next-generation AI accelerator chips. The stock fell as much as 6% before recovering slightly to around 3% losses.
Advanced Micro Devices, Inc., AMD
The selloff began when SemiAnalysis reportedly suggested AMD’s MI450-series chips were running behind schedule. These chips represent the company’s next major push into the AI data center market.
Wells Fargo analyst Aaron Rakers quickly pushed back on the delay rumors. His team’s research found no evidence supporting the claims. Rakers stated AMD’s development timeline remains intact.
The MI450-series relies on TSMC’s N2 process technology, also known as the 2nm node. This advanced manufacturing process is critical for the next wave of AI accelerators. According to Rakers, AMD has already hit key milestones on this technology.
The company completed tape-out of the Venice EPYC processor samples. These samples use the same N2 process that will power the MI450-series. This achievement suggests AMD’s development is progressing as planned.
Production Timeline Unchanged
AMD previously announced volume production would start in the second half of 2026. The bulk of shipments are weighted toward the fourth quarter. Major customers including OpenAI and Oracle are waiting for these chips.
Wells Fargo expects AMD to address the MI450 timeline during next week’s earnings report. The analyst believes the company will reaffirm its launch schedule. Rakers views Friday’s stock weakness as a buying opportunity for investors.
AMD’s server revenue is expected to exceed $38 billion. The company aims to reach over $35 billion in data center GPU revenue by 2027. These projections fuel the bullish case for the stock despite Friday’s decline.
AI Computing Growth Driving Demand
At CES 2026, CEO Lisa Su outlined the explosive growth in AI computing power. Since 2022, AI compute has jumped from 1 zettaflop to more than 100 zettaflops. Su predicts another 100-fold increase over the next five years.
This massive expansion stems from AI training and inferencing needs in data centers. Applications in healthcare, autonomous transportation, and humanoid robots will require substantially more computing power. The upgrade cycle extends beyond single chips.
AMD’s new Helios rack system addresses this demand. The system features 72 GPUs operating as a single computing unit. It combines EPYC CPUs and networking components into one package.
The rack-scale approach should improve AMD’s profit margins. Data center operators may prefer working with AMD to reduce costs and diversify their supplier base. This positions AMD well against larger competitors.
AMD stock has doubled over the past year. The shares trade at a high price-to-earnings multiple. Analysts expect revenue to climb from $25 billion in 2024 to $62 billion by 2027.
Wells Fargo maintains a bullish stance on AMD stock. The analyst firm sees the MI450-series launching on schedule in the second half of 2026 with volume shipments ramping in Q4 to major customers.
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