Join hands with Microsoft Corporation (MSFT.US) to expand AI chip cooperation! AMD (AMD.US) rose in response.

Thanks to the news that Microsoft Corporation (MSFT.US) plans to deploy AMD (AMD.US) chips and CPUs on its Azure cloud platform for artificial intelligence (AI) inference tasks, as of the time of writing, AMD's stock on Monday rose over 3% in early trading. It is reported that AMD announced an expanded partnership with Microsoft Corporation, covering AMD's GPUs, CPUs, Network-1 Technologies, Inc., and software ecosystem, and further integrating these technologies on the Microsoft Corporation Azure platform. Microsoft Corporation will deploy AMD Helios rack-level solutions to provide cutting-edge AI model inference capabilities for Microsoft Corporation and its AI customers, supporting Azure AI services. The two companies stated that Microsoft Corporation Azure will also introduce two new series of virtual machines (VM) based on AMD EPYC CPUs and expand deployment of Pensando data processing units (DPUs). AMD stated that the Helios solution integrates Instinct MI455X GPUs, AMD EPYC Venice CPUs, PensandoNetwork-1 Technologies, Inc., and ROCm software into an open, integrated rack-level platform designed for large-scale AI training and inference tasks. AI inference refers to the process in which a trained AI model uses its acquired knowledge to make predictions or draw conclusions on new and unseen data. Microsoft Corporation Chairman and CEO Satya Nadella stated, "Through our collaboration with AMD, we are leveraging the AMD Helios to expand the Azure infrastructure product portfolio, providing customers with the performance, scale, and choice needed to build and run the next generation AI applications." It is worth mentioning that AMD's flagship annual AI conference "Advancing AI 2026" will be held in San Francisco, USA from July 22nd to 23rd. In a recent report, UBS Group AG stated that AMD's Advancing AI event is scheduled before Intel Corporation's financial report and about two weeks before AMD's own financial report. Investors are focused on whether the company can expand its AI customer base beyond OpenAI and Meta, but UBS Group AG believes that this event will focus on releasing the technical roadmap rather than making significant adjustments to financial modeling. In terms of customers, UBS Group AG still believes that Amazon.com, Inc. (AMZN.US) will be a key customer for the MI450x, with Anthropic possibly on the client list as well, but the bank advises investors to lower their expectations for new client announcements at this event. Besides potential client collaboration announcements, UBS Group AG expects AMD to fully update its AI product line planning: revealing more details about the MI450x Helios, MI500 series, or potentially releasing information about the MI600 roadmap ahead of time, as well as possibly outlining strategies for emerging distributed inference load capabilities. In addition to AI acceleration chips, UBS Group AG expects AMD to provide a more optimistic outlook on the server CPU market space. AMD's last formal update on the overall potential market size (TAM) for server CPUs was in the first quarter of 2026, estimating a market size of $120 billion by 2030, and since then, industry data has significantly improved.