There are many takeaways from Ant Group's recent news, but the one critical to Advanced Micro Devices NASDAQ: AMD investors is this: Ant Group is leaning more heavily on AMD chips and domestically sourced GPUs to lower the cost of training AI.
In the latest trading session, Advanced Micro Devices (AMD) closed at $114.81, marking a +0.84% move from the previous day.
AMD stock price remains in a deep bear market as concerns about the artificial intelligence industry continue. After peaking at $226 in March last year, the stock has plunged by about 50% to the current $113.
The artificial intelligence (AI) revolution wouldn't be possible without the semiconductor industry. The majority of development happens inside data centers that are filled with graphics processing units (GPUs) from leading suppliers like Nvidia (NVDA 3.16%) and Advanced Micro Devices (NASDAQ: AMD).
One of the more tantalizing stocks following the recent market sell-off is Advanced Micro Devices (AMD 7.13%). Shares are down about 40% over the past year as of this writing, despite the chipmaker's strong revenue growth related to artificial intelligence (AI) over the past year.
Shares of semiconductor heavyweights Taiwan Semiconductor Manufacturing (TSM 2.93%), Advanced Micro Devices (AMD 7.39%), and Monolithic Power Systems (MPWR 7.47%) were rallying today, up 2.7%, 7.4%, and 6%, respectively, as of 2:21 p.m. ET.
Advanced Micro Devices (AMD), Nvidia (NVDA), and other chip stocks rallied Monday following reports the Trump administration may not target the semiconductor industry as part of the tariffs scheduled to take effect on April 2.
AMD's growth momentum is strong, with an expectation for the current trend to continue for the foreseeable future. Yet, due to the macroeconomic factors, the investor sentiment surrounding AMD has soured leading to a valuation multiple contraction. When investor sentiment returns, AMD will see valuation multiple expansion from a higher base or a higher EPS as a result of a continued growth.
After its founding in 1969, Advanced Micro Devices (AMD -0.61%) didn't wait long before it decided to debut on public markets. The company held its initial public offering (IPO) three years later in 1972, issuing 620,000 shares of stock at $15.50 per share.
Nvidia (NASDAQ:NVDA) has been an artificial intelligence juggernaut, racking up jaw-dropping numbers that make Wall Street drool.
With the stock market in a correction, some investors are likely to remain a bit pessimistic. There are many unknowns about the effect of tariffs, and the market hates uncertainty.
Advanced Micro Devices (AMD 0.93%) has been ahead of the curve in terms of the AI sell-off trend. The chip stock peaked in March 2024 and has trended lower ever since, and is now down by around 50% from its all-time high.