logo
AMD's Growth Fueled By AI Innovation And Strategic Partnerships

AMD's Growth Fueled By AI Innovation And Strategic Partnerships

Yahoo07-05-2025

Recent advancements in AI chip technology have been highlighted by AMD's impressive first-quarter 2025 earnings. The company reported a significant 57% year-over-year growth in its Data Center segment, largely driven by strong sales of its EPYC CPUs and Instinct GPUs, which are crucial components for AI and data center applications. Additionally, AMD has expanded strategic partnerships and invested in research and development to enhance its AI solutions, indicating a concerted effort to strengthen its position in the rapidly growing AI chip market. These developments underscore the momentum and demand for AI computing capabilities, as companies continue to innovate and address the evolving needs of AI-driven industries.
Advanced Micro Devices last closed at $98.62 down 2%.
In other trading, Tokyo Electron was a standout up 3.5% and finishing the session at ¥21,885. Meanwhile, Hua Hong Semiconductor trailed, down 3% to close at HK$35.20.
Act swiftly to explore AMD's MI350 launch and strategic partnerships boosting potential growth. Click to discover a detailed narrative on AMD's promising developments.
For an in-depth look at AI Chips, revisit our 'Market Insights' article on seizing innovation for outsized returns in volatile markets—get in fast while opportunities last!
Best AI Chip Stocks
QUALCOMM closed at $139.90 up 0.3%.
NVIDIA ended the day at $113.54 down 0.2%. On Tuesday, NVIDIA broadened its partnership with ServiceNow to unveil an advanced AI reasoning model aimed at enhancing enterprise AI workflows.
Intel finished trading at $19.94 down 1.6%. On Tuesday, Intel and NetApp announced their AIPod Mini solution to enhance enterprise AI inferencing with Intel Xeon processors and Advanced Matrix Extensions.
Next Steps
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Down Nearly 60%, Should You Buy the Dip on SoundHound AI?
Down Nearly 60%, Should You Buy the Dip on SoundHound AI?

Yahoo

time12 minutes ago

  • Yahoo

Down Nearly 60%, Should You Buy the Dip on SoundHound AI?

SoundHound AI is growing rapidly, but it's racking up steep losses. Its growing dependence on acquisitions raises a few red flags. A lot of growth has already been baked into its valuations. 10 stocks we like better than SoundHound AI › SoundHound AI (NASDAQ: SOUN), a developer of artificial intelligence (AI)-powered audio recognition tools, saw its stock close at a record high of $24.23 on Dec. 26, 2024. But since then, its stock has declined nearly 60%. Let's see why this hot stock fizzled out -- and if its pullback represents a buying opportunity for long-term investors. SoundHound AI's namesake app identifies songs by listening to several seconds of recorded audio or a few hummed bars. However, most of its growth is fueled by Houndify, its developer platform, which allows businesses to create their own custom voice recognition tools. Houndify powers voice recognition features in restaurant ordering platforms, smart TVs, connected cars, and other devices. It's an appealing option for companies that don't want to send data to Microsoft, Alphabet's Google, or other tech giants that provide their own data-gathering voice recognition services. SoundHound AI initially attracted a lot of attention for three reasons. First, its revenue surged 47% in 2022, rose another 47% in 2023, and jumped 85% in 2024. Second, the booming AI market drove a stampede of bulls to its AI-driven stock. Lastly, the AI chipmaking bellwether Nvidia (NASDAQ: NVDA) boosted its stake in SoundHound and integrated its voice recognition tools into its Drive platform for connected vehicles. Yet Soundify's stock stumbled for three reasons. First, most of its growth in 2023 and 2024 was driven by acquisitions -- including the restaurant AI company SYNQ3, the online food ordering platform Allset, and the conversational AI company Amelia. That strategy strengthened its position in the restaurant industry, but it also indicated it was running out of room to grow. Second, those acquisitions made it even tougher to break even. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins came in at negative 73% last year -- which broadly missed its original target of achieving a positive adjusted EBITDA margin by 2024. Lastly, Nvidia liquidated its entire position in SoundHound AI earlier this year. SoundHound ended 2024 with a backlog of $1.2 billion, and it already serves big automakers like Stellantis, quick-serve restaurants like Chipotle, healthcare institutions like MUSC Health, and tech giants like Tencent. Automakers are adding more voice-activated features to their vehicles, restaurants are using more of its AI tools to process their drive-thru and phone orders, and healthcare institutions are processing more patient requests with Amelia's AI chatbots. SoundHound could still have plenty of room to expand. From 2025 to 2035, the global voice agents market could grow at a compound annual growth rate (CAGR) of 34.8%, according to market research firm as more companies replace their human workers with AI-powered voice agents. For 2025, SoundHound expects its revenue to surge 97%. From 2024 to 2027, analysts expect its revenue to rise at a CAGR of 48%, from $85 million to $277 million. They also expect it to finally squeeze out a positive adjusted EBITDA of $5 million in 2027. That outlook seems promising, but a lot of its future growth has already been baked into its valuations. With a market cap of $4.1 billion, it already trades at 25.5 times this year's sales. It's also more than doubled its number of shares since it went public by merging with a special purpose acquisition company (SPAC) just over three years ago, and that dilution will likely continue as it relies on its secondary offerings to raise fresh cash and its stock-based compensation to subsidize its salaries and acquisitions. So while SoundHound AI is still growing rapidly, it hasn't proven that it deserves its premium valuation or that its business model is sustainable. I might nibble on the stock after its recent pullback -- since its core market is still expanding -- but I wouldn't go all in until it meaningfully narrows its losses. Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SoundHound AI wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Chipotle Mexican Grill, Microsoft, Nvidia, and Tencent. The Motley Fool recommends Stellantis and recommends the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. Down Nearly 60%, Should You Buy the Dip on SoundHound AI? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Microsoft Keeps Hitting Record Highs. Analysts Think There's Still Room to Rise
Microsoft Keeps Hitting Record Highs. Analysts Think There's Still Room to Rise

Yahoo

time12 minutes ago

  • Yahoo

Microsoft Keeps Hitting Record Highs. Analysts Think There's Still Room to Rise

Microsoft shares closed at a record high Thursday and are on track to do it again on Friday. Analysts this week highlighted the tech titan's strong position amid the AI revolution. The consensus price target for analysts tracked by Visible Alpha is about 12% higher than Microsoft's intraday (MSFT) shares are on pace to close at a second record high in as many days Friday, but analysts say there's still a lot of upside left on the table for the world's most valuable company. Bernstein this week raised its target to $540 from $520, arguing the company's partnership with OpenAI 'can generate huge potential revenue upside for Azure' by the end of the decade, according to CNBC. Wedbush meanwhile said Microsoft 'is currently in the driver's seat on the AI front,' in a note to clients. Microsoft's Intelligent Cloud segment, which includes the Azure cloud computing platform, delivered 21% revenue growth year-over-year last quarter, beating analysts expectations. Microsoft called for similar growth in the current quarter, which runs through June. Following the company's Microsoft Build event last month, Goldman Sachs analysts said the company could reach $300 billion in cloud revenue by 2029, compared to $135 billion in fiscal 2024. The bank raised its price target to $550 from $480. The consensus price target for Microsoft shares among analysts tracked by Visible Alpha is near $525, which implies 12% upside over Friday's intraday price of about $471 with all 19 analysts issuing a buy or equivalent rating. Microsoft has jockeyed with Nvidia (NVDA) this week for the title of the most valuable company in the world by market capitalization. Its valuation stood at a whopping $3.48 trillion Friday, with Nvidia just behind at $3.46 billion. Read the original article on Investopedia Sign in to access your portfolio

Jim Cramer on NVIDIA (NVDA): 'The Bear Case on AI May Have Been Dead Wrong'
Jim Cramer on NVIDIA (NVDA): 'The Bear Case on AI May Have Been Dead Wrong'

Yahoo

time27 minutes ago

  • Yahoo

Jim Cramer on NVIDIA (NVDA): 'The Bear Case on AI May Have Been Dead Wrong'

We recently published a list of . In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stocks that Jim Cramer discusses Cramer said that despite NVIDIA Corporation (NASDAQ:NVDA) stock's recent setback, its rebound shows that the skeptics around AI are possibly 'dead wrong.' 'Oh, and NVIDIA for months, it was a chronic underperformer, but hey, it turns out the bear case on AI may have been dead wrong. For instance, have you seen the stock of NVIDIA? It climbed from $86 and change at its lows in April all the way to the mid-130s when it reported an incredible quarter with an amazing forecast, much better than expected. Stock then rallied to 143 after the quarter. But then it was thrown back when the White House refused to let NVIDIA sell China even its lesser semiconductors. A close-up of a colorful high-end graphics card being plugged in to a gaming computer. NVIDIA (NASDAQ:NVDA) designs advanced graphics, compute, and networking solutions spanning gaming, AI, data centers, and automotive technology. The company's products include GPUs, AI platforms, cloud services, and software tools tailored to accelerate innovation across industries. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store