From Nasdaq: 2024-05-07 08:45:00

The development of artificial intelligence (AI) is concentrated in data centers with GPUs. Nvidia’s H100 GPU led to a 217% increase in data center revenue. But AMD’s data center GPUs are gaining traction, with strong demand from customers like Microsoft and Meta Platforms. Analysts have a bullish outlook on AMD stock due to its AI chip advancements and potential for growth in the data center market.

AMD launched its MI300 series of data center chips, competing with Nvidia’s H100. The company has already seen strong adoption from major customers and aims to expand further. AMD’s Ryzen AI chips dominate the personal computing market, with a market share of around 90%. AI is evolving and moving to the edge, enhancing user experiences and creating new opportunities for chipmakers.

Despite modest Q1 revenue growth of 2%, AMD’s data center revenue surged by 80%. The company expects data center GPU sales to exceed $4 billion in 2024. Client segment revenue also saw significant growth with Ryzen AI chips. Gaming and embedded segments faced declines, but AMD remains optimistic about future revenue recovery. Analysts are bullish on AMD stock, with an average price target indicating a 37% upside from current levels.

Wall Street analysts are largely positive on AMD stock, with 31 out of 49 analysts giving it the highest buy rating. The company’s strong performance in the data center market and advancements in AI chips are driving optimism. While AMD’s current valuation may seem high, analysts project strong earnings growth in the coming years. Investing in AMD stock now could lead to significant returns in the future.



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