AMD Eyes Major AI Win with 10,000-Chip Deal in Korea

FomoAnxiety · 2026-03-23T06:24:54+00:00

AMD is in talks to sell 10,000 AI chips to South Korean startup Upstage, potentially reducing reliance on Nvidia. This deal highlights AMD's strategy to strengthen its position in the growing AI market and reflects a broader trend of diversifying AI chip suppliers amidst rising demand.

FomoAnxiety

2026-03-23 06:24:54

Abstract generation in progress

Advanced Micro Devices AMD -1.92% ▼ is in discussions to sell 10,000 AI chips to South Korea’s AI startup, Upstage, in a deal that could reduce the country’s reliance on Nvidia NVDA -3.28% ▼ , according to a Bloomberg report. The move reflects a broader trend as companies look to diversify their AI chip suppliers amid rising demand for computing power.

Claim 70% Off TipRanks Premium

Trade NVDA with leverage
New trading tool for NVDA bulls/bears
Forget margin or options. Here’s how the pros trade NVDA

A Key Opportunity for AMD

AMD could be nearing one of its larger AI deals if talks with Upstage move forward. Last week, CEO Lisa Su met Upstage CEO Sung Kim in Seoul to discuss supplying its latest MI355 AI chips.

For AMD, the deal would go beyond volume. It would strengthen its position in South Korea’s fast-growing AI market. With demand rising and concerns around Nvidia’s supply constraints and pricing levels, rivals like AMD are starting to gain ground.

If finalized, the deal would mark an important win and signal rising competition in AI chips.

Upstage Taps AMD to Boost AI Computing Power

Upstage is one of four teams competing in a government-backed race to build South Korea’s leading AI model. The contest, called the “AI Squid Game” after the Netflix NFLX +0.09% ▲ show, is part of South Korea’s effort to become a global leader in AI. Teams are reviewed every six months, and stronger performers gain greater access to high-end chips, including Nvidia GPUs.

The company is now developing a large language model with about 200 billion parameters for the next round this summer. To stay competitive, it needs reliable and large-scale computing power.

At the same time, Upstage is focusing on efficiency. It aims to build high-performance models at lower cost, which is important as cheaper AI models from China gain traction. Adding AMD chips could help balance cost and performance while reducing reliance on a single supplier.

Upstage is also expanding beyond Korea. It is targeting markets such as the UAE and Vietnam with “sovereign AI” systems that run within a country’s borders, helping keep data and infrastructure under local control.

Is AMD Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 21 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $284.96, representing a potential 41.54% 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.