Is Advanced Micro Devices Stock a Buy Now?
There's a major shift underway in the semiconductor industry. Intel has fallen behind as large data center operators seek more powerful chips to run artificial intelligence (AI) models. This is benefiting one of the leading suppliers of graphics processing units (GPUs), Advanced Micro Devices (NASDAQ: AMD). While Intel stock has fallen 46% over the last five years, AMD shares have rocketed 166%.The next wave of AI models will require exponentially more processing power than what is currently available, which is a huge opportunity for AMD. While it trails Nvidia in the GPU market, AMD has made strategic moves to position itself for long-term growth. Its data center revenue nearly doubled in 2024, and the stock's valuation is low enough to support substantial gains if it can maintain a steady pace of innovation.AMD entered the data center GPU market in late 2023 with the launch of its Instinct MI300 accelerators. Demand for these chips helped grow its data center AI revenue to over $5 billion last year, or nearly 20% of its total revenue. The company's pending $4.9 billion acquisition of ZT Systems could be a game-changer for AMD's data center business. Continue reading
There's a major shift underway in the semiconductor industry. Intel has fallen behind as large data center operators seek more powerful chips to run artificial intelligence (AI) models. This is benefiting one of the leading suppliers of graphics processing units (GPUs), Advanced Micro Devices (NASDAQ: AMD). While Intel stock has fallen 46% over the last five years, AMD shares have rocketed 166%.
The next wave of AI models will require exponentially more processing power than what is currently available, which is a huge opportunity for AMD. While it trails Nvidia in the GPU market, AMD has made strategic moves to position itself for long-term growth. Its data center revenue nearly doubled in 2024, and the stock's valuation is low enough to support substantial gains if it can maintain a steady pace of innovation.
AMD entered the data center GPU market in late 2023 with the launch of its Instinct MI300 accelerators. Demand for these chips helped grow its data center AI revenue to over $5 billion last year, or nearly 20% of its total revenue. The company's pending $4.9 billion acquisition of ZT Systems could be a game-changer for AMD's data center business.
