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AMD stock was slipping Wednesday. The chip maker is following in Nvidia's footsteps by investing in a neocloud company.
AMD (AMD) is positioned for 15-20% upside as it justifies its premium valuation amid surging AI and enterprise demand. Data Center, comprising 48% of revenue, and major client buildouts from OpenAI and Meta drive structural sales and profitability inflection. FY25 saw 34% YoY sales growth to $34.6B, gross margin near 50%, and strong $6.7B free cash flow, supported by a robust net cash balance.
Chip makers AMD, Intel, and Micron slide as the selloff in AI and other momentum stocks accelerates.
AMD's Data Center revenues surge 57% to a record $5.8B as AI infrastructure demand boosts EPYC and Instinct adoption across cloud and enterprise markets.
Chip stocks are leading a sharp midday pullback Tuesday, with Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) down 9% and Intel (NASDAQ:INTC) sliding 8%.
Advanced Micro Devices is rated Strong Buy, targeting a $977.32 fair value, driven by compute inversion and agentic AI trends. AMD's 256-core Venice CPU, panel-level EFB packaging, and open-ecosystem strategy position it to capture a significant share of the $120B+ server CPU TAM. Key catalysts include the Meta 6-GW ASIC deal, MI450X/Helios deployments, and AMD's move to bypass TSMC's CoWoS bottleneck for margin expansion.
The broad stock market is really taking things into overdrive, and that's thanks primarily to the new class of heavy-lifters referred to by Ben Emons as the “Parabolic 7.
The ARTY ETF has nearly doubled in the past year, with shares up 102% over the trailing twelve months and 55% year to date through late May.
Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) has pledged to invest up to $2.7 billion (£2 billion) in the UK over the next five years, betting on the country's ambitions to become a global centre for artificial intelligence research and advanced computing. The US semiconductor titan, one of the top 15 largest companies in the S&P 500, used London Tech Week to unveil a package of investments, partnerships and infrastructure projects spanning universities, scientific research and AI supercomputing.
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