AMD predicted to thrive in the next five years due to advancements in AI chip industry

From Yahoo Finance: 2025-04-19 08:41:00

Advanced Micro Devices (NASDAQ: AMD) has faced challenges, losing over 60% of its value due to industry struggles and tariff concerns. However, the company’s advancements in the chip industry, particularly in artificial intelligence (AI), could position it for growth in the next five years. Despite uncertainties, the data center segment, including AI accelerators, shows strong revenue growth. AMD’s MI300 and upcoming MI350 and MI400 accelerators are gaining traction, with tech giants choosing them over Nvidia’s chips. Analysts predict revenue growth and an end to the down cycle in gaming and embedded segments, making AMD a promising investment.

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Randi Zuckerberg, former Facebook director and sister to Meta Platforms CEO Mark Zuckerberg, sits on The Motley Fool’s board. Will Healy, author of the article, holds positions in Advanced Micro Devices. The Motley Fool recommends and has positions in AMD, Meta Platforms, Microsoft, and Nvidia, as well as options on Microsoft.

Predictions suggest AMD will thrive in the next five years, citing one key reason. For more details, refer to the original article published by The Motley Fool.

Read more: Prediction AMD Will Soar Over the Next 5 Years. Here’s 1 Reason Why.