Advanced Micro Devices shares traded 1.52% higher at $542.87 at publication on Wednesday, according to Benzinga Pro data. Vultr announced plans to install AMD Instinct MI355X GPUs in a new 20 MW supercluster in Chennai, India. The supercluster will be India's largest deployment of AMD Instinct GPUs. The Chennai facility will be Vultr's second supercluster among the world's largest, alongside Vultr's facility in Springfield, Ohio.
Vultr is the world's largest privately held cloud infrastructure company. Each GPU provides 288GB of HBM3E memory and memory bandwidth of 8TB/s. The Chennai supercluster will use AMD's ROCm open software to serve AI labs, foundation model builders, startups, enterprises and research institutions. Vultr plans to add capacity in 2027, including AMD Instinct MI455X GPUs and AMD Helios rack-scale architecture. Vultr CEO J.J. Kardwell said enterprises deploying AI at scale need locally accessible infrastructure to satisfy data sovereignty, data residency and latency requirements.
Susquehanna analyst Christopher Rolland retained a Positive rating on AMD and increased AMD's price target from $550 to $620. Susquehanna separately forecast modest upside in semiconductor companies' third-quarter results and fourth-quarter guidance. Susquehanna said lead times were lengthening by about two weeks for the second consecutive quarter. However, Susquehanna expects below-seasonal second-half client results at AMD and Intel because PC builds are falling short of expectations. AMD is expected to release results on November 3.
Semiconductor stocks gained across the sector after stronger-than-expected updates from Super Micro Computer and SpaceX renewed optimism that AI server spending remains strong. Some traders appear to be awaiting economic data to assess whether the Federal Reserve will raise rates this month. Higher interest rates increase borrowing costs, potentially reducing spending and tightening economic conditions, which tends to hurt growth stocks such as semiconductor companies. Weak data could revive inflation concerns and influence the Federal Reserve's rate decision. CME FedWatch data cited by Axios put the probability of an October rate increase at 44% last week.
AMD Stock Rises as Vultr Announces New Supercluster in India
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Summary
AMD shares climbed 1.52% to $542.87 on Wednesday as Vultr announced a new 20 MW supercluster in Chennai, India, featuring AMD Instinct MI355X GPUs. The facility will be the largest AMD GPU deployment in the country and Vultr’s second, following its Ohio site. The project supports AI labs and startups via AMD’s ROCm software. Vultr plans to expand with MI455X and Helios in 2027. Altcoins to watch may benefit from such infrastructure growth, especially amid a rising fear and greed index.
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