AMD (Advanced Micro Devices) Stock News

The share price of computer processor maker Advanced Micro Devices (NASDAQ: AMD) has resumed bullish momentum, aligning with the overall stock market rally following the Federal Reserve's interest rate cut.

AMD secured a major win by supplying processors for Sony's PlayStation 6. The company is also making significant strides in the GPU accelerator market, closing the gap with Nvidia in AI inference benchmarks. Accretive design wins and continued progress in accelerator design and sales make AMD a Buy.

The blue chip index closed above the psychologically significant 42,000 level for the first time ever Thursday.

Nvidia Corporation dominates AI datacenter GPU sales, but AMD is rapidly enhancing its software and hardware capabilities to capture market share, recommending a Strong Buy on AMD. AMD's acquisitions of SiloAI and ZT Systems, along with ROCm software updates, aim to compete with Nvidia's CUDA and expand AMD's TAM significantly. AMD's projected 20% CAGR in revenue through FY25, improving margins...

AMD is adept at catching up with competitors. Assuming it can also catch up in the AI chip market, its growth will likely continue.

AMD secured the PlayStation 6 processor contract, beating out Intel to continue a long-term Sony relationship. The PlayStation 6 should be expected to maintain compatibility with PS5 and PS4 games, as it stays with a familiar hardware structure.

As the artificial intelligence (AI) craze still runs high, offering plenty of opportunities for growth stocks to achieve outstanding returns, two particular AI-focused stocks might have it in them to outpace the S&P 500 index through the decade's end.

Advanced Micro Devices has more than just the MI300X to compete against Nvidia.