Is AMD the next AI powerhouse to dethrone Nvidia? Forecast its stock trajectory post-earnings.

**AMD is poised to challenge Nvidia's dominance in AI**, and its stock trajectory post-earnings could be bullish based on several key factors:

1. **Competitive Positioning**: AMD's decision to increase the price of its Instinct MI350 AI accelerator to $25,000 reflects confidence in its competitiveness in the market, particularly against Nvidia's Blackwell B200. Despite the price increase, AMD's AI chips remain cheaper than Nvidia's counterparts, giving AMD an advantage in pricing that could attract cost-sensitive customers.
2. **Market Demand and Innovation**: The AI chip market is expected to grow significantly, with forecasts indicating it could exceed $500 billion by 2028. AMD's expanding portfolio tailored for data center applications, such as the MI300 series accelerator family, positions it well to capitalize on this growth. The company's latest MI350 price increase and strong demand suggest a favorable market reception to its AI offerings.
3. **Analyst Optimism**: Analysts from HSBC have upgraded their rating on AMD to a “buy” and doubled their price target to $200, citing the company's ability to compete with Nvidia's latest-gen GPUs. This upgrade reflects growing recognition of AMD's potential in the AI market.
4. **Strategic Partnerships and Market Expansion**: AMD's collaboration with major clients like Oracle, Tesla, OpenAI, and Cohere, as well as its expanding footprint in data centers, strengthens its market position. The company's partnerships and roadmaps, such as the upcoming MI400 platform, indicate a forward-looking strategy that could lead to sustained growth.
5. **Stock Performance and Investor Sentiment**: AMD's stock has already shown a positive reaction to the AI chip price increase, rising 2.95% to $178.78. Investor sentiment, bolstered by HSBC's revised AI chip sales forecast and regulatory easing, suggests a favorable outlook for AMD's stock post-earnings.

Considering these points, AMD's stock trajectory post-earnings could be optimistic, potentially driven by continued growth in the AI market and AMD's strategic positioning within it. However, it's important to note that Nvidia remains a leading player with a strong competitive edge, particularly in the realm of training and neural networks. AMD will need to maintain its momentum in innovation and market expansion to sustain its challenge against Nvidia.