TLDR
- AMD and HUMAIN are investing up to $10B to deploy 500 megawatts of AI compute capacity over five years
- Partnership aims to build “world’s most open, scalable, resilient, and cost-efficient AI infrastructure”
- AMD posted 36% year-on-year revenue increase in Q1 2025
- Company achieved 50% GAAP gross margin, up from 47% last year
- Some analysts have set price targets as high as $200 per share
AMD and Saudi Arabia’s AI enterprise HUMAIN have announced a landmark $10B collaboration to build what they describe as the world’s most open and efficient AI infrastructure. The partnership marks a major move in AMD’s strategy to compete in the rapidly growing AI market.
The agreement calls for deploying 500 megawatts of AI compute capacity over the next five years. This massive investment will create a network of AMD-based AI computing centers spanning from Saudi Arabia to the United States.
“At AMD, we have a bold vision to enable the future of AI everywhere,” said Dr. Lisa Su, Chair and CEO of AMD. “Our investment with HUMAIN is a major milestone in advancing global AI infrastructure.”
HUMAIN CEO Tareq Amin described the project as “an open invitation to the world’s innovators,” emphasizing their goal of democratizing AI at the compute level.
The collaboration is already in motion. Initial deployments are underway across key global regions. The partners expect to activate multi-exaflop capacity by early 2026.
Full-Spectrum AI Solutions
The partnership leverages Saudi Arabia’s energy resources and AMD’s complete AI technology stack. This includes AMD Instinct GPUs, EPYC CPUs, Pensando DPUs, Ryzen AI, and the AMD ROCm open software ecosystem.
These technologies will power AI workloads across enterprise, startup, and sovereign markets. The infrastructure is designed to be “open by design” and “accessible at scale.”
HUMAIN will manage the end-to-end delivery. This includes hyperscale data centers, sustainable power systems, and global fiber interconnects.
Market Performance Drives Optimism
AMD’s recent financial performance has fueled market optimism. The company reported a 36% year-on-year increase in Q1 2025 revenues.
This growth came from the booming data center market and a rebound in PC sales. AMD’s competitive new products, like Zen 5 Ryzen CPUs, have been selling well.
The company also improved its profitability. AMD posted a 50% GAAP gross margin, up from 47% last year. On a non-GAAP basis, gross margins reached 54%.
Non-GAAP earnings per share increased by 55% year-over-year. This reflects strong operational growth and cost discipline as the company expands.
Wall Street analysts have taken notice. Following AMD’s results, several analysts reiterated their Buy ratings. One analyst, Ingo Wermann from DZ Bank, upgraded his stance from neutral to bullish.
Price targets vary among analysts. Wermann’s target is $118 per share. More optimistic analysts like Hans Mosesmann from Rosenblatt Securities expect AMD to reach $200 within twelve months.
The average AMD price target on Wall Street is $126.81, suggesting almost 17% upside potential over the coming year.
$AMD lining up behind $NVDA like it wants next. 👀 pic.twitter.com/c7u3XdhPi7
— TrendSpider (@TrendSpider) May 13, 2025
Despite these positive signs, AMD faces some challenges. New export restrictions are creating headwinds. The company expects an $800 million charge in the upcoming quarter due to restrictions on selling high-end chips to China.
AMD also depends on third-party vendors like TSMC for manufacturing. This creates potential supply chain vulnerabilities.
Competition remains intense in the semiconductor space. AMD continues to face pressure from rivals NVIDIA and Intel in various market segments.
However, many analysts believe AMD’s strengths outweigh these concerns. The company’s diverse product portfolio and growing presence in high-margin segments like data centers and AI position it well for future growth.
The HUMAIN partnership is the most recent factual development, representing AMD’s continued push to gain market share in the competitive AI infrastructure space.
