AMD sees significant growth driven by pandemic and AI boom, challenging Nvidia in AI chip market

From Nasdaq: 2024-08-25 05:02:00

Advanced Micro Devices (NASDAQ: AMD) has seen a 3,000% increase in stock value over the past decade, fueled by the pandemic and AI boom. The company is challenging Nvidia in the AI chip market with recent acquisitions. Data center revenue hit a record $2.8 billion in Q2.

AMD acquired ZT Systems for $4.9 billion, enhancing its AI capabilities. ZT Systems provides compute infrastructure to top cloud companies like Amazon and Microsoft. AMD plans to sell ZT’s manufacturing business, boosting AI training services. CEO Lisa Su sees AI as a top priority for the company.

As AMD aims to compete with Nvidia in the GPU market, it acquired Silo AI for $665 million. The company is on a path of accelerated growth, particularly in data center and client segments. Strong momentum in AI chip demand positions AMD for future growth.

Investors should consider AMD’s potential in the AI market, with acquisitions strengthening its position. While not recommended by Stock Advisor, AMD’s growth potential remains high. The company’s strategy in AI and strong market presence make it a viable investment option.



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