Advanced Micro Devices said on Wednesday it will acquire Finnish artificial intelligence startup Silo AI for about $665 million in cash as the company tries to enhance its AI chip capabilities to compete against industry leader Nvidia.
Advanced Micro Devices (NASDAQ: AMD ) is not seeing the same rally as its chip counterpart Nvidia (NASDAQ: NVDA ). Nvidia's share price has rallied more than 154% since the start of the year, while Advanced Micro Devices stock appears relatively flat, only appreciating 16.6% for the year as of last Friday's trading session.
If you've been sitting on the sidelines amid the massive AI-fulled run in the broader markets, you may wonder if it's too late to reach for the so-called AI winners that stand to win most from the ongoing AI boom or revolution that's going in. Indeed, like cryptocurrencies, you're probably not going to stop hearing about generative AI and the top semiconductor plays feeding the boom anytime soon.
The cryptocurrency sector continues to mature, with significant trends emerging in 2024 that highlight the growing importance of infrastructure within the industry. Notable areas of investment include blockchain infrastructure and digital payment solutions.
The maker of graphics processing units for artificial intelligence will benefit from both higher sales volume and higher prices when its next chips become available, KeyBanc says.
In the rapidly advancing tech world, semiconductor AI stocks are emerging as pivotal players in market value growth through the development of AI chips and related applications. These companies are riding the AI wave.
Leading technology stocks have been riding high in recent months following the bullish momentum in the artificial intelligence (AI) market.
Nvidia Corp NVDA and peer stocks, including Advanced Micro Devices, Inc AMD, are trading higher on Monday, demonstrating the continued artificial intelligence frenzy.
Three semiconductor stocks can benefit from the AI trend.
Currently, there is a major bottleneck right now for AI applications to where client devices are not powerful enough or energy efficient enough to leverage AI capabilities at the edge. AI-capable PCs are projected to rise from ~19% of total PC shipments this year to more than 70%, even up to 80% by 2028. Competition in AI PCs is quickly heating up, with Intel forecasting a surge in its PC chip shipments, while Nvidia, AMD and others line upArm-based CPUs to take on Qualcomm.
Wall Street has rallied over tech stocks since last year thanks to a boom in AI. AMD has refocused its chipmaking business to compete in this budding industry.
Not all chip stocks enjoyed the exuberant first-half performance seen by Nvidia Corp. NVDA, -1.91% — and Melius Research analyst Ben Reitzes thinks some notable laggards could be primed for solid rebounds.