Advanced Micro Devices (AMD) stock edged lower on Friday after the chipmaker announced the acquisition of AI inference specialist Taalas, as investors balanced the strategic deal against near-term concerns over slowing growth in its client and gaming businesses and intensifying competition from Nvidia. AMD shares fell about 2% even as the company unveiled its latest acquisition aimed at strengthening its position in the rapidly expanding artificial intelligence market.
Here, we have picked three AI stocks, AMD, AMZN and KLAC, which are well-poised to benefit from AI's growing use and ability to solve complex problems.
AMD's post-earnings dip highlights near-term PC and gaming weakness, but surging Data Center demand and AI deployments support long-term growth prospects.
Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) just delivered the kind of quarter that reprices a franchise.
AMD slides after beating Q2 estimates, but strong AI and data center growth outlooks may steer investors toward ETFs with meaningful exposure to this chipmaker.
Advanced Micro Devices, Inc.'s Q2 earnings outperformance and raised long-term targets, despite an underwhelming Q3 outlook against lofty market expectations, reinforce accelerating data center momentum. Agentic workloads have emerged as the fastest-growing server CPU use case, expanding EPYC's long-term opportunity. EPYC Venice, Instinct MI450, and Helios are competitively positioned to support further upside as next-generation data center deployments ramp.
I keep hitting the buy button on Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction), and after this latest quarter I am not close to stopping.
Advanced Micro Devices, Inc. delivered record $11.5 billion revenue and $1.66 EPS, while Data Center revenue surged 107% and now represents 58% of sales. Helios transforms AMD from selling individual chips into supplying complete AI infrastructure platforms, supported by Anthropic, Microsoft, Meta, and OpenAI commitments. Server CPUs are becoming a second AI growth engine, with management forecasting over 70% revenue growth and a $220 billion market by 2030.
Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) and Marvell Technology (NASDAQ:MRVL) have cleared their most recent earnings, deepening the case for treating them as the market's preferred high beta alternatives to NVIDIA (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO).
At $518.58, Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) looks compelling, and its punishing beta of 2.49 works in shareholders' favor at this stage of the AI capex cycle.
Judging by the uptick in short positions, investors appear confident that Advanced Micro Devices (NASDAQ: AMD) stock price drop, triggered by the latest earnings, will persist at least in the short term.
Nvidia, Micron and AMD slipped in US pre-market trading on Thursday after SanDisk's outlook triggered a retreat across artificial-intelligence and memory-chip shares. At 5.30am ET, Nvidia was slightly lower, Micron had fallen 3.3% and AMD was down 1.9%, while SanDisk tumbled more than 9%.