Advanced Micro Devices

AMD demonstrates improving pricing power in data center CPUs and semi-custom, and could benefit from AI accelerator scarcity. However, Nvidia retains superior pricing power at the high end of AI GPUs given CUDA lock-in.

AMD’s own non-GAAP gross margins reached 53 percent in FY2024 and would have approximated mid-50s in Q2 2025 absent China-related charges, suggesting underlying pricing potential as mix shifts toward EPYC and Instinct.

The new MI350 series and Helios rack-scale solutions may enhance system-level value capture, yet we still discount the score due to competitive intensity and hyperscaler bargaining power.