AMD Stock Slips Despite the Reveal of New Diamond-Cooled AI GPUs

FomoAnxiety · 2026-03-03T16:02:08+00:00

AMD's stock fell 4.54% despite Akash Systems unveiling Diamond Cooling for its MI350X GPUs. This collaboration aims to enhance AI infrastructure efficiency. Despite recent declines, analysts maintain a positive outlook on AMD's long-term potential.

FomoAnxiety

2026-03-03 16:02:08

Abstract generation in progress

Advanced Micro Devices AMD -4.62% ▼ stock was down on Tuesday despite news that Akash Systems has developed Diamond Cooling for the semiconductor company’s Instinct MI350X GPUs. Diamond Cooling is a unique system developed by Akash Systems that utilizes the high thermal conductivity of diamonds to transfer heat from processors to cooling fans. This allows processors to perform more efficiently, offering better results for owners.

Claim 70% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Akash Systems has teamed up with MiTAC Computing to create servers that are powered by the Instinct MI350X and are equipped with Diamond Cooling. This marks the first time that Diamond Cooling technology has been used in a commercial release of an AMD Instinct MI350X server. The company also intends to release Diamond Cooling systems for AMD’s Instinct MI355X GPUs and future AMD Instinct GPUs.

Dr. Felix Ejeckam, co-founder and CEO of Akash Systems, said, “AI demand is rapidly outpacing the infrastructure that powers it. Akash’s patented solution breaks through the thermal bottleneck to accelerate AI deployments, profitably. Together with AMD and MiTAC, we are bringing world-class technology and expertise to build the foundation AI needs to scale.”

AMD Stock Movement Today

AMD stock was down 4.54% on Tuesday, extending an 11.42% drop year-to-date. However, the company’s shares were still up 97.14% over the past 12 months.

AMD stock is likely down on reports that the U.S. government may limit exports of AI chips to China. Additionally, a top analyst cut his price target for AMD shares.

Is AMD Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 23 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $286.04, representing a potential 50.85% upside for the shares.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.