Shares of Advanced Micro Devices (AMD) declined around 2% on Monday, trading near $196, despite the company unveiling its first Ryzen AI processors designed for desktop systems. The new Ryzen AI 400 Series and Ryzen AI PRO 400 Series processors, announced at Mobile World Congress 2026, are the first desktop chips built to support Microsoft's Copilot+ PC experiences. They feature a neural processing unit capable of up to 50 TOPS of AI compute, enabling local execution of AI applications and large language models.
AMD's senior vice president, Jack Huynh, stated, "The desktop PC is evolving from a tool you use to an intelligent assistant that works alongside you." The company also expanded its AI PC lineup to include workstations. Separately, UBS reiterated a Buy rating on AMD with a $310 price target, noting the company signaled potential for a third gigawatt-scale customer beyond existing deals with OpenAI and Meta Platforms, with Microsoft seen as a likely candidate.
Meanwhile, Nvidia's stock rose around 2% to $180.31 in early trading, rebounding after a 7.5% drop over the prior week. The rebound occurred despite broader market pressure from geopolitical tensions, including U.S. and Israeli strikes on Iran. Analysts pointed to investor caution around AI spending. UBS noted that hyperscalers are diverting nearly 100% of free cash flow to capital expenditures this year, far above the 10-year average of 40%, raising concerns about overheated AI investment.
Morgan Stanley named Nvidia a top pick, citing an attractive entry point and sustained demand for computing power from frontier AI developers. In a separate move, Nvidia announced a $4 billion investment to strengthen its AI infrastructure supply chain, investing $2 billion each in photonics companies Lumentum and Coherent.
