Why AMD stock is down around 2% today

Shares of Advanced Micro Devices declined on Monday even as the company unveiled its latest artificial intelligence-enabled processors, marking its first release of Ryzen AI chips for desktop systems.

At the time of writing, the AMD stock was down around 2% to trade at $196.

The stock fell despite the announcement, which introduced the Ryzen AI 400 Series and Ryzen AI PRO 400 Series desktop processors at Mobile World Congress 2026.

Previous iterations of Ryzen AI chips had been limited to laptops.

In a press release, AMD said the new processors deliver “powerful on-device AI acceleration and next-generation performance,” allowing users to run AI applications and large language models locally while handling compute-intensive tasks in fields such as design and engineering.

The company also expanded its Ryzen AI 400 Series mobile lineup to include workstations, enabling original equipment manufacturers to offer AI-focused PCs across desktops, laptops, and mobile workstations optimised for modern workloads.

Copilot+ desktop support and AI acceleration

AMD said the Ryzen AI 400 Series processors are the first designed for next-generation desktop AI PCs supporting Microsoft Copilot+ PC experiences.

The processors feature a neural processing unit capable of delivering up to 50 TOPS of AI compute, enabling AI assistants and productivity tools to run locally on devices.

According to AMD, this approach helps ensure sensitive data remains on the PC while offering improved control, performance, and privacy.

“The desktop PC is evolving from a tool you use to an intelligent assistant that works alongside you,” said Jack Huynh, senior vice president and general manager of the Computing and Graphics Group at AMD.

“With the Ryzen AI 400 Series processors – the world's first designed to power new Copilot+ experiences on the desktop – we’re bringing powerful AI acceleration that enables our partners to build systems that empower both enterprises and consumers to do more and create more.”

UBS reiterates buy rating

Separately, an Investing.com report said UBS reiterated a Buy rating and a $310 price target on AMD stock, expressing confidence in revenue growth for 2027.

UBS noted that AMD signalled the possibility of securing a third gigawatt-scale customer beyond existing agreements with OpenAI and Meta Platforms.

The bank said Microsoft appears the most likely candidate.

According to UBS, AMD dismissed concerns that warrant structures and 10% equity stakes granted to Meta and OpenAI would become standard requirements for future gigawatt-scale deals.

The company characterised those arrangements as unique to large language model developers that control significant portions of the AI ecosystem.

UBS added that AMD views the equity structures as accretive over the long term and as a means to accelerate market share gains in the broader accelerator market.

The chipmaker also expressed optimism regarding its CPU segment, seeing potential upside to its long-term financial model’s projected 18% compound annual growth rate.

UBS said AMD anticipates growth driven by both unit expansion and higher average selling prices.

However, the bank characterised AMD as more of a second-half 2026 investment story, with MI450 shipments tied to the OpenAI agreement expected to begin then, followed by shipments to Meta.