Latest news with #MI300
Business Insider
3 days ago
- Business
- Business Insider
‘Big Things Ahead,' Says Top Investor About AMD Stock
Advanced Micro Devices (NASDAQ:AMD) stock has experienced a volatile ride in the AI space. Once hailed as a potential challenger to segment leader Nvidia, the narrative was later tempered, with skeptics doubting AMD's ability to compete at the highest level. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Yet, those doubts now appear to be fading. The Lisa Su-led company is increasingly viewed as a strong contender, perhaps not to dethrone Nvidia, but certainly to be the second-best option in the AI chip race. That renewed optimism is reflected in the stock's recent performance, with shares up 122% since bottoming out in April. And with AMD set to report Q2 earnings next Tuesday (Aug 5), some investors believe the rally still has legs. One of them is top investor Danil Sereda, who's ranked among the top 2% of stock pickers on TipRanks. Looking ahead, Sereda thinks the chip giant is set to deliver an investor-pleasing readout. 'AMD heads into Q2 FY2025 earnings with strong momentum, driven by robust AI and data center demand, and a history of consistent double-beats,' the 5-star investor said. Indeed, while questions about AMD's AI positioning have lingered, the company has continued to turn in solid financial results. That was evident in Q1, when AMD topped both revenue and earnings estimates. A key driver was the Data Center segment, which posted $3.7 billion in revenue – a 57% year-over-year increase – thanks to strong demand for EPYC CPUs and Instinct GPUs. During the earnings call, management emphasized growing traction with hyperscalers and enterprise customers, supported by more than thirty new cloud instances and expanding on-premise adoption for the seventh consecutive quarter. Sereda believes this momentum is far from a fluke. With MI300 series GPUs gaining traction, the rollout of MI350 samples underway, and Oracle making a multi-billion-dollar commitment to MI355x, the investor sees AMD's AI strategy gaining meaningful ground. These developments, coupled with new Tier 1 partnerships and the ZT Systems acquisition, suggest AMD is positioning itself to capture a growing share of what was estimated last year as a $500 billion AI compute market – a figure that may now understate the opportunity, given sustained hyperscaler demand. 'With the MI350 and upcoming MI400 series, AMD should eventually narrow the gap with Nvidia,' Sereda opined. Given the strong setup heading into the earnings print, Sereda admits it might look risky to recommend buying the stock just a week ahead of results, but he believes the odds of another upbeat quarter are 'quite high,' especially with the Data Center segment poised to extend its revenue share gains and boost margins and overall growth. In light of this bullish thesis, Sereda rates AMD shares a Buy. (To watch Sereda's track record, click here) Meanwhile, Wall Street takes a more measured stance. AMD stock holds a Moderate Buy consensus, based on 26 Buys and 10 Holds. However, with the average price target of $147.83 implying a ~15% downside from current levels, some analysts may soon be forced to revisit their forecasts. (See AMD stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
4 days ago
- Business
- Yahoo
Own AMD stock? This Is the 1 Thing to Watch Now.
Key Points AMD shares are surging at the halfway point in 2025 as investors look toward a huge opportunity to meet growing demand for AI chips. Investors are closely watching AMD's data center growth, following strategic investments to widen its product portfolio in recent years. Analysts expect the company to grow earnings at a 30% annualized rate over the next few years. 10 stocks we like better than Advanced Micro Devices › Shares of Advanced Micro Devices (NASDAQ: AMD) have surged 81% over the last three months. For shareholders, the stock's rebound is encouraging following the underperformance in 2024, while its larger rival Nvidia outperformed. Nvidia has dominated the market for data center chips. AMD has seen strong growth for its MI300 series of graphics processing units (GPUs) for data centers, but it's got a lot of work to do if it's going to catch the leader. Wall Street is betting on AMD to show strong earnings growth over the next year as it continues to expand its data center offering. Despite Nvidia's commanding lead, both stocks are currently trading at the same forward price-to-earnings (P/E) multiple of about 39 in the last week of July. To justify more highs for AMD shares, investors are going to want to closely monitor its data center growth, as this is the key catalyst for AMD to expand its margins, grow earnings, and deliver more gains for shareholders. Let's look at AMD's strategy to tackle this multibillion-dollar opportunity, and how it could benefit the stock over the next few years. AMD's data center growth AMD estimates the data center market for artificial intelligence (AI) accelerators to exceed $500 billion by 2028. This represents annualized growth of more than 60%, driven by the shift in AI workloads from training to inference, where computer models are smart enough to make predictions from new data in real time. One glaring issue for AMD is that Nvidia already provides just about everything needed to build AI factories, including software, networking, and hardware, and that has made Nvidia the preferred choice for AI researchers. On a trailing-12-month basis, Nvidia's data center revenue doubled to more than $131 billion. By comparison, AMD's trailing data center revenue grew 84% year over year to $13.9 billion. Nvidia holds a large share of the data center market, but it doesn't control 100% of it. There's growing demand for cost-effective alternatives to counter the steep prices of Nvidia's chips. Even though Nvidia has led the GPU market for 20 years, AMD has delivered incredible returns to shareholders by offering GPUs with a better cost-performance ratio. AMD is starting to put together a differentiated set of chip solutions for data centers. Its acquisition of Xilinx a few years ago brought over industry-leading field programmable gate arrays (FPGAs) that can be customized for specialized workloads in data centers, such as network security and medical research. Amazon has been a major buyer of AMD's FPGAs for its cloud business. AMD has made investments to widen its offering in recent years, which could start to pay off. The 2022 acquisition of Pensando Systems expanded its chip lineup to data processing units (DPUs), while its most recent acquisition of ZT Systems brought in 1,200 skilled engineers to design more comprehensive computing systems for data centers. AMD clearly sees an opportunity to grow its data center business significantly in the coming years, and if successful, it could send the stock soaring. Will AMD keep up with Nvidia? AMD is making the strategic moves to position itself for growth, but investors shouldn't take anything for granted. Nvidia's data center business has expanded more rapidly than AMD, and this is creating a widening gap between the two companies' data center segments. In 2023, Nvidia's data center revenue was more than 7 times larger than AMD's, and today, Nvidia is nearly 10 times bigger. However, AMD is the only alternative to Nvidia in the GPU market. AMD's business with Amazon and other data center operators put it in a solid position for more growth, and the best part is that AMD is currently generating much lower margins than other semiconductor companies. It stands to significantly expand margins as it ramps up new chips for the data center market. Analysts expect AMD's total revenue to reach $44 billion by 2027, with earnings per share growing 30% annually to reach $7.12, compared to 29% annualized earnings growth for Nvidia. That's enough earnings growth for the share price to double within the next three years. The comparable earnings growth prospects are why investors are paying roughly the same forward P/E for both stocks right now. Nvidia is the leader and is growing its data center revenue faster, so AMD will have to execute in a highly competitive semiconductor industry. If AMD can meet analyst expectations, the stock offers significant upside over the next few years. Investors will want to closely watch its data center segment to justify its valuation. Should you buy stock in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 John Ballard has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, and Nvidia. The Motley Fool has a disclosure policy. Own AMD stock? This Is the 1 Thing to Watch Now. was originally published by The Motley Fool
Yahoo
18-07-2025
- Business
- Yahoo
Bank of America makes its boldest AMD call yet
Bank of America makes its boldest AMD call yet originally appeared on TheStreet. Sometimes, Mr. Market whispers, but other times, it straight-up roars. This week, AI stock Advanced Micro Devices () found itself in the middle of the loudest buzz. That's the kind that comes with a billion-dollar tailwind: a major shift in global trade policy. 💵💰💰💵 Its data-center business has already been booming, but now it's onto bigger runways, courtesy of reopened doors in China. Moreover, as the outlook shifts, a major Wall Street voice put its name on a call that's its boldest yet on AMD stock. AMD goes from underdog to AI infrastructure powerhouse AMD kicked things off this year as an underdog in AI chips. However, its latest results show it's far from playing catch-up anymore. In the first quarter, AMD's data-center sales surged 57% from last year, hitting $3.7 billion. That's nearly 50% of the company's total revenues, and a clear sign that its AI chips are getting real traction. AMD's EPYC CPUs and Instinct GPUs, especially the MI300 series, are owning the chips are effectively shaping major data centers and getting strong reviews in the process. Some buyers even say AMD's chips beat Nvidia's when it comes to price and performance. And AMD's next move is arguably even bigger. In June, it showed off the MI350 Series and a new rack system called Helios. It's essentially a comprehensive full AI setup that includes CPUs, GPUs, networking, and cooling, all efficiently designed to work together out of the box. AMD claims the MI350 delivers 40% more AI performance for every dollar spent in comparison to the previous version. Major tech players are lining up. Meta is already making use of MI300 chips for its AI models and plans to test the MI350 next. Meanwhile, startup TensorWave recently built the largest AMD GPU system in North America, 8,192 chips pushing 21 exaFLOPS of power. More AI Stock News: TikTok's next move has Google and Meta sweating bullets Elon Musk moves xAI, Grok onto Palantir turf Rigetti shakes up quantum computing with bold advance What's also helping AMD compared to, say, Nvidia, is that it's betting on an open-source system called ROCm. That's winning over cloud providers and companies looking for greater flexibility. AMD stock gets green light to chase China's AI boom Bank of America analyst Vivek Arya is going big on AMD. In a bold July 16 note, Arya hiked his price target on AMD stock from $130 to $175, a superb 35% jump. Arya's bullishness has everything to do with the massive policy reversal from Washington that's likely to reshape the AI chip race. The U.S. government is now allowing AMD and Nvidia (NVDA) to resume shipments of advanced AI accelerators to Chinese data center customers. For AMD, that's a massive shift in the right effectively reopens enterprise sales channels that were frozen by export controls. Also, this could unlock $500 million to $1 billion in revenues for AMD in just the next two quarters. But it's not just a short-term revenue bump. The MI300 series and AMD's next-gen MI400 chip are now back in business in arguably the most lucrative AI market. China's top cloud providers reportedly spend roughly 20% of global AI training dollars. That's not a pool AMD wants to sit out of. On top of that, the U.S. chipmaker gets to sharpen its competitive edge against both Nvidia and Chinese rivals like Huawei, on the back of favorable policy tailwinds. Still, AMD must navigate supply chain hiccups, geopolitical uncertainty, and a testing competitive landscape. However, if all goes well, the company is set for a multi-quarter AI growth run that could make its current validation a lot cheaper. The $45-per-share hike in his target is easily the loudest Wall Street endorsement of AMD this year, underscoring a robust belief in the chipmaker's long-term growth of America makes its boldest AMD call yet first appeared on TheStreet on Jul 18, 2025 This story was originally reported by TheStreet on Jul 18, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
AMD's AI Chips Gain Ground in Data Centers: A Sign for More Upside?
Advanced Micro Devices AMD is strengthening its footprint in the artificial intelligence (AI) market through an expanding portfolio tailored for data center applications. The latest MI300 series accelerator family strengthens its competitive position in the generative AI space, catering to the increasing demands of AI workloads in modern data centers. The MI300 series accelerator is based on AMD CDNA 3 accelerator architecture and supports up to 192 GB of HBM3 memory. In comparison, NVIDIA's H100 NVL dual-GPU card offers 188GB of HBM3 memory. Thanks to these features, AMD MI300X can efficiently run large language model training (up to 80 billion parameters) and inference for generative AI workloads. The expanding footprint is clearly reflected in AMD's financial performance. In the first quarter of 2025, data center revenues surged 57.2% year over year to $3.674 billion, accounting for 49.4% of total revenues. The Zacks Consensus Estimate for second-quarter Data Center revenues is pegged at $3.31 billion, indicating an impressive year-over-year increase of 16.7%.Building on this momentum, in June 2025, Meta Platforms announced the broad deployment of AMD Instinct MI300X for Llama 3 and Llama 4 inference. Meta Platforms also expressed strong interest in the MI350 Series and is collaborating with AMD on future AI roadmaps, including the MI400 platform. Advanced Micro Devices Faces Stiff Competition AMD faces stiff competition in the data center AI chip market from industry giants like Intel Corporation INTC and NVIDIA Corporation has launched AI chips for data centers and PCs. This is primarily aimed at gaining a firmer footing in the expansive AI sector, spanning cloud and enterprise servers, networks, volume clients, and ubiquitous edge environments, in tune with evolving market dynamics. Intel has unveiled the Intel Core Ultra, featuring a neural processing unit that enables power-efficient AI acceleration with 2.5 times better power efficiency than the previous generation. NVIDIA is benefiting from the strong growth of artificial intelligence (AI), high-performance and accelerated computing. The data center end-market business is likely to benefit from the growing demand for generative AI and large language models utilizing GPUs based on NVIDIA's Hopper and Blackwell architectures. The strong demand for its chips from large cloud service and consumer Internet companies is anticipated to continue aiding the data center segment's top-line growth. In the first quarter of fiscal 2026, data center revenues jumped 73.3% year over year and 9.9% from the previous quarter to $39.1 billion. AMD's Share Price Performance, Valuation and Estimates Advanced Micro Device shares have gained 28.8% year to date (YTD), outperforming the broader Zacks Computer & Technology sector's return of 8.3% and the Zacks Computer - Integrated Systems industry's increase of 26.6%. AMD Stock Performance Image Source: Zacks Investment Research AMD stock is trading at a premium, with a forward 12-month Price/Sales ratio of 7.29X, compared to the industry's 3.92X. AMD has a Value Score of D. AMD Valuation Image Source: Zacks Investment Research The Zacks Consensus Estimate for second-quarter 2025 earnings is currently pegged at 47 cents per share, unchanged over the past 30 days, indicating a 31.88% year-over-year decline. Advanced Micro Devices, Inc. Price and Consensus Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote The consensus mark for 2025 earnings is pegged at $3.82 per share, which has declined 3 cents over the past 30 days, suggesting 15.41% year-over-year currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
10-07-2025
- Business
- Business Insider
AMD vs. MRVL vs. INTC: Which Chip Stock Is Wall Street's Best Pick?
Chip companies are benefiting from artificial intelligence (AI)-led demand for their products. They are also expected to gain from larger tax credits under Trump's 'big, beautiful bill,' as an incentive to boost domestic production. However, macro challenges, tariff uncertainties, rising competition, and chip export transactions have been weighing on their performance. Despite ongoing headwinds, long-term demand trends appear favorable for chipmakers, driven by the continued shift to the cloud and AI boom. Using TipRanks' Stock Comparison Tool, we placed Advanced Micro Devices (AMD), Marvell Technology (MRVL), and Intel (INTC) against each other to find the best chip stock, according to Wall Street analysts. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Advanced Micro Devices (NASDAQ:AMD) Stock Advanced Micro Devices stock has risen about 19% over the past month, bringing the year-to-date rise to 14%. Upbeat first-quarter results, strategic acquisitions to support AMD's AI ambitions, and new graphics processing units (GPUs), mainly MI350 and MI400 series, unveiled at the Advancing AI event, have driven the stock higher and addressed concerns about the company lagging behind rival Nvidia (NVDA) in the AI race. Ahead of AMD's Q2 results scheduled on August 5, several analysts are confident about strong growth in the company's data center GPU (graphics processing unit) business. Currently, analysts expect AMD to report earnings per share (EPS) of $0.49, reflecting a 29% year-over-year decline. Revenue is estimated to grow by 27% to $7.41 billion. Is AMD Stock a Buy or Sell? Recently, Melius Research analyst Ben Reitzes upgraded AMD stock to Buy from Hold and raised the price target to $175 from $110. The 4-star analyst discussed several favorable aspects, including stronger-than-anticipated demand for AMD's MI300 and MI350 series GPUs as well as early traction for the upcoming MI400 platform. Reitzes also noted the demand for Advanced Micro Devices' products in AI inferencing and moderating risks in the PC segment. He also highlighted robust deal momentum, including those with Amazon (AMZN), ChatGPT-maker OpenAI, Meta Platforms (META), and Saudi Arabia's HUMAIN. Aside from AI GPUs, Reitzes expects continued share gains in high-margin server CPUs. With 24 Buys and 10 Holds, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock. The average AMD stock price target of $133.62 indicates 3% downside risk from current levels. Marvell Technology (NASDAQ:MRVL) Stock Marvell develops application-specific integrated circuits (ASICs) that are used as AI accelerators by customers in their data centers and cloud infrastructure. These AI accelerators (or XPUs) are preferred by some customers as they can be cost-effective alternatives to Nvidia's GPUs, which are designed for more generic workloads. Marvell stock has risen 5.3% over the past month but is still down about 35% year-to-date. A guidance miss earlier this year dragged down the stock along with macro woes and tariff pressures. However, the company's market-beating Q1 FY25 results and second-quarter guidance improved investor sentiment, reflecting strength in the demand for the company's custom chips amid the AI boom. The company is optimistic about the road ahead, bolstered by the demand for custom AI chips. Management expects to gain from robust spending by hyperscalers, sovereign data center projects, and opportunities in emerging markets. What Is the Forecast for MRVL Stock? Recently, Piper Sandler analyst Harsh Kumar reiterated a Buy rating on Marvell stock with a price target of $85, saying 'Growth to be Driven by XPU Proliferation.' Following meetings with management, the 5-star analyst noted that the company's growth strategy for its XPUs is on track and is set to ramp significantly in the near to mid-term timeframe. In Kumar's view, MRVL is one of only two companies that hold the necessary intellectual property to service the leading-edge XPU market for hyperscaler customers. He continues to believe that this market will remain resilient as hyperscaler spend remains strong. Turning to Wall Street, Marvell stock scores a Strong Buy consensus rating on TipRanks, based on 27 Buys and four Holds. The average of $91.39 indicates 27% upside potential from current levels. Intel Corporation (NASDAQ:INTC) Stock Intel stock has risen 18% so far this year, as investors are hopeful of a turnaround under the leadership of the company's new CEO Lip-Bu Tan. In fact, INTC stock surged 7.2% on July 8, as investors welcomed the news of new tax credits and additional layoffs aimed at streamlining operations. The chipmaker has been struggling in recent years, as a lack of innovation, strategic missteps, and delays in product launches have led to a continued loss of share in the CPU market to AMD. CEO Tan is attempting to revive the business by enhancing efficiency, reducing costs, divesting non-core assets, and introducing new products. While investor sentiment has improved, Wall Street remains cautious on INTC stock, as several analysts await further signs of improvement at the company. Moreover, analysts are concerned that Intel may miss the opportunity to capitalize on AI-driven demand for advanced chips. Additionally, chip restrictions and tariff woes could hinder the company's ongoing restructuring efforts. Intel is scheduled to announce its second-quarter earnings on July 24. Wall Street expects Intel's Q2 revenue to decline by more than 7% to about $12 billion, while EPS is estimated to remain flat on a year-over-year basis at $0.02. Is Intel a Buy, Sell, or Hold? Recently, Truist Securities analyst William Stein reiterated a Hold rating on Intel stock with a price target of $21. The 5-star analyst stated that Intel's Foundry Direct Connect conference provided a glimpse of CEO Tan's strategy, which he believes is similar to that of his predecessor. He noted that building the company's manufacturing and foundry capabilities remains a major focus. Stein added that Tan's recent hires suggest that Intel's longer-term aspirations may resemble Broadcom's (AVGO) ASIC business. Stein is concerned that tariff-related pull-ins may impact near-term demand. Meanwhile, the analyst noted that INTC's restructuring and layoffs continue to get attention. He believes that Intel's aim is to reduce the number of management layers to simplify the company's organizational complexity. Stein expects Intel's Q2 earnings to be the next significant catalyst. He added that Q2 expectations are muted. The analyst sees earnings as more likely a positive than a negative catalyst, though his 'conviction on this matter is low.' Overall, Wall Street has a Hold consensus rating on Intel stock based on 26 Holds, four Sells, and one Buy recommendation. At $21.44, the average INTC stock price target implies a possible downside of 9.1% from current levels. See more INTC analyst ratings Conclusion Wall Street is sidelined on Intel stock and cautiously optimistic on AMD stock. Meanwhile, analysts are bullish on the growth prospects of Marvell stock, backed by AI tailwinds. They see higher upside potential in MRVL stock than in the other two chip stocks. Most analysts view the pullback in Marvell stock as an attractive buying opportunity to capitalize on the company's long-term growth story.
