Advanced Micro Devices Inc. (AMD) surpassed $900 billion in market capitalization for the first time on Monday as it launched the Ryzen AI Halo developer platform priced at $3,999. The new product undercuts Nvidia Corp.'s DGX Spark by $700, offering developers a lower-cost alternative for running large AI models locally. AMD shares rose more than 8% in Monday's opening trade, hitting an all-time high of $558.37, as the company positions itself as a competitive alternative to Nvidia in the AI accelerator hardware market.
AMD Launches Ryzen AI Halo at $3,999 with 128GB Memory
AMD's Ryzen AI Halo developer platform is now available for $3,999. The system is powered by the Ryzen AI Max+ 395 processor and features 128GB of unified memory. The platform supports Windows 11 and allows users to run AI models locally on a computer roughly the size of Apple's Mac mini. AMD claims the Ryzen AI Halo includes support for running up to 200 billion parameter AI models locally.
Ryzen AI Halo Claims 14% Performance Advantage Over Nvidia DGX Spark
AMD claims the Ryzen AI Halo offers up to 14% better performance in terms of tokens per second when compared to Nvidia DGX Spark across multiple AI models. The Ryzen AI Halo's support for up to 200 billion parameter AI models locally is on par with Nvidia's stated capability for DGX Spark. The Ryzen AI Halo offers support for both Windows 11 and Linux, while Nvidia's DGX Spark supports Linux only.
Citi and BofA Raise AMD Price Targets Following AI Product Launch
Monday's gains in AMD shares came after analyst upgrades last week. Citi upgraded AMD to 'Buy' from 'Neutral' last week and lifted its price target to $575 from $460, stating the market is underestimating the company's GPU potential. The firm stated that AMD is emerging as a legitimate second source in the AI accelerator market and is positioned to win a substantial portion of Meta's business.
Analysts at BofA raised their price target on AMD to $560 from $500 and maintained a 'Buy' rating, citing a larger server CPU opportunity driven by agentic AI. The firm increased its 2030 server CPU market forecast to more than $170 billion from $125 billion.
AMD stock is up 156% year-to-date. The stock is on track to post its third session of gains on Monday and is set to breach a near-term resistance level around $542.
FAQ
What did AMD announce on Monday?
AMD surpassed $900 billion in market capitalization for the first time on Monday and launched the Ryzen AI Halo developer platform priced at $3,999, which undercuts Nvidia's DGX Spark by $700.
How does AMD's Ryzen AI Halo compare to Nvidia's DGX Spark?
AMD claims the Ryzen AI Halo offers up to 14% better performance in tokens per second compared to Nvidia DGX Spark and supports up to 200 billion parameter AI models locally, matching Nvidia's stated capability. The Ryzen AI Halo supports both Windows 11 and Linux, while DGX Spark supports Linux only.
What price targets did analysts set for AMD?
Citi upgraded AMD to 'Buy' and lifted its price target to $575 from $460 last week. BofA raised its price target on AMD to $560 from $500 while maintaining a 'Buy' rating.
