Some analysts think AMD’s new chips will help it act as a more credible alternative to Nvidia for customers that want to hedge their bets

AMD's (NASDAQ:AMD) showed off its new MI350 artificial intelligence accelerators at its AI event on Thursday, but it's the upcoming MI400 that could be the “longer-term potential inflection,” Morgan Stanley said.

AMD receives positive ratings from Wall Street after Advancing AI event, with analysts reiterating Buy ratings and forecasting strong growth.

AMD has launched the Helios AI server platform to compete with Nvidia, featuring the MI350 and MI400 series chips. Key elements of the system will be openly available, contrasting Nvidia’s closed technology.

The chip maker said it partnered with prominent companies such as Meta Platforms, OpenAI, Oracle and Microsoft as it seeks an open AI ecosystem.

Advanced Micro Devices faces near-term headwinds from export controls and competition, even as its AI portfolio and partnerships expand.

Palantir is quickly becoming one of the biggest artificial intelligence (AI) winners. Nvidia, AMD, and TSMC are all set up to be big AI infrastructure spending beneficiaries. Alphabet has a lot of potential levers it can pull to drive growth.

According to AMD, the MI350 series features 60% more memory than Nvidia’s flagship Blackwell B200 graphics cards. The company is also promising faster performance for some workloads. AMD says that MI350 chips can process 8-bit floating point numbers 10% faster than the B200 and 4-bit floating point numbers more than twice as fast.

CEO Lisa Su said artificial intelligence inferencing demand is now outpacing training demand due to an "explosion" in the number of models. "Training is always going to be the foundation for developing models,

The unquestioned leader in the GPU space is Nvidia, which commands an over 80% market share. Not only is Nvidia larger than AMD, but it's also been growing its data center revenue more quickly. Last quarter, Nvidia grew its data center revenue by 73% to $39.1 billion, while AMD's data center revenue jumped 57% to $3.7 billion.