Advanced Micro Devices stock price could see a boost if Nvidia projects strong AI demand for the foreseeable future.
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Notching a considerably weaker performance in 2024 from its rivals in the semiconductor sector, Advanced Micro Devices (NASDAQ: AMD) stock wasn't troubled with many insider sales during this year.
AMD ramped up its AI expansion this year. The company has unveiled a range of new AI GPUs and will acquire server builder ZT Systems.
AMD's growth rate is expected to pick up thanks to its growing influence in the AI chip market. Investors can expect the stock to deliver healthy gains through 2030 thanks to robust earnings growth.
AMD made a massive acquisition so it could compete better against Nvidia.
AMD is acquiring ZT Systems to help provide end-to-end server systems to data center customers. The deal is aimed at helping it better compete against Nvidia.
AMD doubled down on the data center opportunity with a $4.9 billion acquisition of infrastructure provider ZT Systems this week. Wedbush weighed in by maintaining an outperform rating on the shares with a $200 price target.
Advanced Micro Devices NASDAQ: AMD recently made an important announcement in the firm's efforts to catch up with Nvidia NASDAQ: NVDA in the data center market. The semiconductor company announced that it will acquire the firm ZT Systems in a nearly $5 billion transaction.
Key Points: AMD is a strong contender in the AI chip market, trailing only NVIDIA.
AMD is acquiring server company ZT Systems for $4.9 billion. While manufacturing servers is a low-margin industry, AMD will try to sell the manufacturing operations and use the acquisition as a way to sell more AI chips.
AMD's stock has fallen about 20% over the last month. Meanwhile, Alphabet's share price is down 13% since mid-July.