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Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best stocks to buy for next-gen data centers. On May 7, the company introduced its AMD Instinct MI350P PCIe GPUs to enable enterprises to deploy generative and agentic AI within existing data center infrastructure. AMD said the MI350P cards are dual-slot accelerators for standard air-cooled servers and are designed to run inference within current rack, power, and cooling environments rather than requiring a full infrastructure redesign.

The launch fits AMD’s broader push to compete in AI data center compute beyond traditional CPUs. Dell Technologies said its PowerEdge XE7745 and R7725 servers will support AMD Instinct MI350P PCIe GPUs starting in July 2026, expanding the Dell AI Platform with AMD for enterprises running AI workloads on premises. AMD’s latest results also showed momentum in the segment: on May 5, the company reported Q1 2026 Data Center revenue of $5.8 billion, up 57% year over year, driven by strong EPYC processor demand and the continued ramp of AMD Instinct GPU shipments.

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops CPUs, GPUs, adaptive computing products, AI accelerators, embedded processors, and related software for data centers, PCs, gaming, industrial, automotive, and communications markets.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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