10:45 AM EDT, 08/05/2025 (MT Newswires) -- Advanced Micro Devices ( AMD ) recently raised the price of its MI350 Series AI graphics processing units by 70% to about $25,000 per unit, signaling confidence in its competitive positioning versus Nvidia ( NVDA ) , Zacks Investment Research said in an earnings preview on Tuesday.

The price jump is likely tied to strong demand as datacenter scaling accelerates and the fact that AMD has secured major customers, including Oracle (ORCL), Google (GOOG, GOOGL), Microsoft ( MSFT ) , OpenAI, Meta (META), and Dell (DELL), according to the preview.

"AMD claims up to 40% better 'tokens per dollar' compared to Nvidia ( NVDA ), though this depends on the AI workload," the firm added.

This pricing and performance strategy aims to challenge Nvidia's ( NVDA ) dominance in AI accelerators, Zacks said.

AMD is also building rack-scale AI systems, using MI400 Series GPUs and Zen 6 CPUs, which will contest Nvidia's ( NVDA ) $4 million GB200 NVLink72 systems, the firm said.

AMD reports Q2 earnings after the close on Tuesday.

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