Is it worth considering purchasing Advanced Micro Devices (AMD) shares, given their current price is below $200?
AMD's MI400 Series and Helios: A Look Ahead
In the rapidly evolving world of technology, AMD continues to make strides in the data center sector. The company launched its flagship MI300X data center GPU at the end of 2023, marking a significant milestone. Now, AMD is setting its sights on the future with the announcement of the MI400 series, scheduled for release in 2026.
The MI400 series is not just a new generation of GPUs; AMD plans to integrate them with specialized software and hardware systems to create a fully integrated AI data center rack called Helios. This innovative system is expected to offer 10 times more performance over the MI350 series when it launches, according to AMD CEO Lisa Su.
However, the road to this ambitious project has not been without challenges. AMD's AI data center revenue experienced a speed bump in Q2, partially due to export restrictions imposed by the U.S. government that wiped out AI GPU sales to China, affecting the data center segment's performance.
Despite these hurdles, AMD's overall performance has been impressive. The company generated a record $7.7 billion in total revenue during the second quarter of 2025, a 32% increase from the year-ago period. This growth was driven by various sectors, including the data center segment, which contributed $3.2 billion, albeit with only 14% growth, and the client segment, which saw a 67% year-over-year increase to $2.5 billion.
Sales of Ryzen AI chips for personal computers played a significant role in this growth, and the demand for AMD's gaming products has also been strong. The gaming business revenue surged by 73% to $1.1 billion in Q2, with demand for its new Radeon 9000 series desktop GPUs exceeding supply.
The MI350 series GPUs, based on a new architecture called Compute DNA 4, offer 35 times more performance than CDNA 3 versions like the original MI300X. The latest MI355 offers comparable performance to Nvidia's Blackwell GB200 GPU and delivers up to 40% more tokens in AI inference workloads for the same cost.
Interestingly, the MI400 series GPU is already experiencing strong customer interest despite not hitting the market until next year. As of now, no specific companies have publicly announced plans to integrate AMD's MI400 series AI GPUs into their AI data centers for the 2026 release.
In terms of financials, AMD's non-GAAP (adjusted) earnings per share (EPS) over the last four quarters was $3.45, placing its stock at a price-to-earnings (P/E) ratio of 46.8. Wall Street's consensus estimate suggests AMD could deliver $5.97 in EPS during 2026, placing its stock at a forward P/E ratio of just 27.1. This lower P/E ratio compared to Nvidia's 55.7 indicates that AMD's stock could be a great addition to any diversified portfolio due to potential upside if the MI400 series performs well next year.
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