AMD's AI Opportunity: Should You Buy After 23% Drop?

AMD's data center chips for AI workloads are among the best in the industry for performance and cost, with the potential to generate over $100 billion in revenue. Despite a 23% drop in stock price, AMD stock is still not cheap. The company's latest MI350 series GPUs are based on the CDNA 4 architecture, which rivals Nvidia's Blackwell chip architecture. AMD plans to release its MI400 series GPUs in 2026, which will be paired with specialized software and hardware systems to create a fully integrated data center rack called Helios.