AMD has been quite busy this month. It first revealed its agreement with OpenAI for 6 gigawatts of power for OpenAI’s AI infrastructure across multiple generations of AMD Instinct GPUs.
This agreement also included AMD issuing OpenAI a warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones are achieved.
Another significant move was on October 14, when Oracle and AMD revealed an expansion of their collaboration. The first publicly available AI supercluster powered by AMD Instinct MI450 Series GPUs will have its initial deployment of 50,000 GPUs in Oracle Cloud Infrastructure, starting in calendar Q3 2026 and expanding in 2027 and beyond.
As if these big deals weren’t enough, on October 14, at the Open Compute Project (OCP) Global Summit in San Jose, AMD showcased its “Helios” rack-scale design, based on the new Open Rack Wide specification, introduced by Meta.
On August 5, AMD reported its results for Q2 of fiscal 2025.
During the earnings call, AMD CEO Lisa Su said:
Helios is purpose-built for the most demanding AI workloads, with each rack connecting up to 72 GPUs that can operate as a single massive AI accelerator. Helios is expected to deliver up to a 10x generational performance increase for the most advanced frontier models.
Revenue of $7.7 billion, an increase of 32% year over year
Gross margin of 40.0%, compared to 49% in Q2 2024
Net income of $872 million, an increase of 229% YoY
Diluted earnings per share (EPS) of $0.54 compared to $0.16 in Q2 2024
Revenue of $8.7 billion +/- $300 million
Expected non-GAAP gross margin of approximately 54%
Revenue from AMD Instinct MI308 shipments to China not included
Bank of America analyst Vivek Arya and his team updated their opinions on AMD shares after the Helios rack-scale platform was showcased at the OCP Conference.
The analysts said they have greater visibility into the deployment and ramp outlook of MI450 Series’ Helios racks launching in the second half of 2026, supported by key industry customers such as Oracle, Meta, and OpenAI.
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They now assume 50% OpenAI deal (6 GW deployment over 4 years) fall-through in their base model. Bank of America also raised sales/EPS estimates and highlighted upside toward $10 to $11 EPS power by calendar year 2027 at 100% fall-through.
