JP Morgan Projects 60% Growth for AMD’s AI GPU Business This Year, Notes Oracle’s Initial Order of 30,000 MI355X GPUs

This content does not constitute investment advice. The author holds no shares in the stocks referenced.

Shifting Trends in AMD’s AI GPU Business

In recent months, Wall Street’s outlook on AMD’s position in the artificial intelligence (AI) GPU market has undergone notable changes. Back in December 2024, Wolfe Research expressed skepticism, suggesting that “AMD won’t be in a position to guide AI for CY25.”This pessimism was echoed by George Hotz, president of comma.ai, who remarked in January 2025 that “nobody at comma wants to deal with AMD.”However, positive developments have emerged for AMD, as highlighted by JP Morgan analyst Harlan Sur.

Positive Insights from JP Morgan

Following recent meetings with AMD’s CEO, Lisa Su, JP Morgan analysts gained an optimistic perspective on the company’s future. Sur conveyed that the AMD team exhibits increased confidence, projecting strong double-digit growth (possibly over 20%) and improved earnings growth heading into CY25.

Key Catalysts Propelling Growth

Sur identified four pivotal factors that could significantly contribute to AMD’s success:

Increasing market share in the server CPU market.
Gains in the desktop and notebook CPU segments amid rising demand trends.
Expansion of cyclical business areas, particularly gaming and embedded systems.
Significant growth in AMD’s AI GPU sector, projected at over 60% in 2025.

Momentum in AI GPU Sector

Sur pointed out that AMD is gaining momentum in preparation for the second half of 2025, which is expected to showcase its next-generation MI350 accelerator platform. A key example of this advancement is Oracle’s recent commitment to purchase a multi-billion dollar order for the MI355 GPU, starting with an initial order of 30, 000 MI355X units intended for a cluster that will support both training and inference tasks.

Strategic Customer Transitioning

Additionally, Sur indicated that AMD is actively working to transition major clients—Microsoft, Meta, and Oracle—onto the MI350 platform by mid-year. This strategic transition anticipates preparing these customers for the larger MI400 platform, which aims for rack-scale deployments entailing over 100, 000 GPUs per cluster set for launch in CY26.

Analyst Overview on Growth Prospects

In closing, Harlan Sur articulated the following key sentiment:

“Overall, the key message is that the team’s strong and diversified data center/enterprise/client compute portfolio will drive strong growth in CY25—a combination of share gains, improving demand/cyclical trends, and growing momentum for its next-gen AI compute solutions.”

Industry Movements

In related news, Reuters reports that TSMC is encouraging major players such as NVIDIA, AMD, and Broadcom to invest in a potential joint venture with Intel, where TSMC would oversee Intel’s foundry operations.

Source & Images