Stein said that "a significant inventory build is difficult to explain" and he questioned whether AMD is only attracting buyers because of genuine preference or simply to "stimulate competition and price‑check Nvidia"

For example, AWS’s made a brief appearance and disappearance from AMD’s customer list. Stein noted that Amazon prefers to announce collaborations on its own terms, suggesting that it maintains strategic discretion.

At the same time, AMD is rolling out its new MI350 GPUs, promising four times the AI compute power and 35 times the inference performance over previous models

These chips arrive in Q3 and are expected to bolster AI revenue in the second half of 2025, with Cantor Fitzgerald’s C.J. Muse projecting around $6 billion

However, not all analysts are optimistic. BofA’s Vivek Arya cautioned that AMD still trails Nvidia and faces fresh competition from ASIC makers.

Arya noted: "With Nvidia continuing to execute and custom ASICs gaining more traction at hyperscalers, we think it could be hard for AMD to 'win' the AI narrative"

Bernstein’s Stacy Rasgon echoed the concern, describing AMD’s recent AI revenue as “not bad but no huge surprises”

On the other hand, some bullish voices remain. Melius Research analysts recently upgraded AMD to ‘Buy,’ citing momentum from MI400 rack-scale systems and partnerships with major clients.

They believe AMD could eventually capture 5 per cent of the AI accelerator market—translating to over $20 billion in GPU sales by 2028