Latest news with #2025AdvancingAI
Yahoo
08-07-2025
- Business
- Yahoo
Advanced Micro Devices Stock Gains 11% YTD: Time to Hold or Exit?
Advanced Micro Devices AMD shares have rallied 11.4% in the year-to-date period, outperforming the Zacks Computer and Technology sector's increase of 7.9%. The company's shares have also outperformed its peer, Intel Corporation INTC, which is also expanding its footprint in the data center and client segments. Intel's shares have gained 9.5% in the year-to-date period. Image Source: Zacks Investment Research Despite Intel's efforts, AMD's innovation has given it an edge over INTC. Advanced Micro Devices is benefiting from its expanding portfolio, accretive acquisitions and rich partner base. Its robust Data Center and Client revenues have been a major growth driver for its how should you play the AMD stock now? Let's dig deep to find out. AMD's expanding portfolio has been noteworthy. It is benefiting from its strong presence in the data center market, which is driven by the widespread adoption of its EPYC processors. In the first quarter of 2025, data center revenues surged 57.2% year over year to $3.674 billion, accounting for 49.4% of total on this momentum, in June 2025, the company announced that Nokia NOK had adopted its fifth-gen EPYC 9005 Series processors for the Nokia Cloud Platform. These processors will enhance performance per watt for containerized workloads, which is important to 5G Core, edge, and enterprise applications. The integration of AMD EPYC 9005 Series processors into Nokia Cloud Platform supports telecom networks in meeting rising data demands while improving energy efficiency and reducing environmental impact. AMD is strengthening its footprint in the artificial intelligence (AI) market through an expanding portfolio. AMD recently introduced its comprehensive, end-to-end AI platform at the 2025 Advancing AI event, introducing the powerful Instinct MI350 Series GPUs with 4x generational AI compute gains. The company also showcased its open, rack-scale AI infrastructure and ROCm 7 software stack, enabling scalable, energy-efficient AI deployment. Strategic partners, including Meta Platforms, OpenAI, Microsoft, and Oracle, highlighted AMD's growing role in powering next-generation AI Platforms announced the broad deployment of AMD Instinct MI300X for Llama 3 and Llama 4 inference. Meta Platforms also expressed strong interest in the MI350 Series and is collaborating with AMD on future AI roadmaps, including the MI400 platform. Despite an expanding portfolio and a rich partner base, AMD is facing stiff competition from NVIDIA NVDA in the data center is benefiting from the strong growth of artificial intelligence (AI) and high-performance, accelerated computing. The growing demand for generative AI and large language models, which utilize GPUs based on NVIDIA's Hopper and Blackwell architectures, is driving its data center revenues. In the first quarter of fiscal 2026, Data Center revenues jumped 73.3% year over year and 9.9% from the previous quarter to $39.1 billion. Despite an expanding portfolio and a rich partner base, AMD is expected to be hurt by export restrictions on GPUs to China, which will be a headwind and stiff competition from expects second-quarter 2025 revenues of $7.4 billion (+/-$300 million). At the mid-point of the revenue range, this represents year-over-year growth of approximately 27%. AMD expects a reduction of approximately $700 million in second-quarter 2025 revenues due to the halt of MI308X shipments to China. The Zacks Consensus Estimate for AMD's second-quarter 2025 earnings is currently pegged at 54 cents per share, which has declined by a couple of pennies over the past 30 days, indicating a year-over-year decline of 21.74%.The consensus mark for second-quarter 2025 revenues is pegged at $7.41 billion, indicating year-over-year growth of 26.96%. Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote AMD stock is currently overvalued, as the Value Score of F suggests a stretched valuation at this stock is trading at a premium, with a forward 12-month Price/Sales of 6.33X compared with the Computer - Integrated Systems industry's 3.83X. Image Source: Zacks Investment Research AMD's expanding portfolio, strategic acquisitions and rich partner base are expected to improve its top-line growth. However, its near-term prospects are dull due to macroeconomic uncertainties and stiff competition, particularly from NVIDIA in the cloud data center and AI chip markets. The growing demand for custom AI chips, offered by companies like Broadcom, is increasing concerns over market share. Stretched valuation also remains a concern. AMD currently has a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Nokia Corporation (NOK) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
17-06-2025
- Business
- Yahoo
AMD: 256-Core Epyc CPUs Are Coming in 2026
The next generation of AMD's Epyc data center CPUs is on track and slated for 2026. The processors didn't get as much love at AMD's recent 2025 Advancing AI event as, say, the new Instinct MI350X and MI355X AI GPUs, but AMD made clear that Epyc is also a priority. The company pointed to 2026 for the launch of Epyc Venice and noted that the upcoming CPU will have 256 Zen 6 cores, along with significant bandwidth for AI workloads. AMD's current 5th Gen Epyc Turin CPUs are capable processors that are powering a growing number of data centers. But the 6th generation sounds like it will dwarf the current CPUs when it comes to performance. At least, that's how things look for now, before the public gets its hands on the processors. AMD says that the new Venice Epycs can provide up to a 70% performance increase over Turin CPUs. But, as Tom's Hardware notes, AMD hasn't provided much information about how the testing was done. Credit: AMD Venice will support 1.6TBps in bandwidth, up from Turin's 614GBps. The processors will also have twice the CPU-to-GPU bandwidth. AMD announced in April that its 6th-generation Epyc CPU had been taped out, meaning that the processor is ready for manufacturing. TSMC will produce them using its new N2 (2nm-class) node in Taiwan. The foundry's growing fab cluster in Arizona, known as Fab 21, isn't yet capable of producing chips with the N2 process, though it likely will be down the road. Dr. Lisa Su holding the current "Turin" Epyc server CPU. Credit: AMD As we covered recently, the success of Epyc CPUs has helped drive AMD's stunning success in pulling server CPU market share away from Intel. In 2017, AMD CEO Dr. Lisa Su started AMD on a path that led from 0% server CPU market share to nearly 40% at the end of Q1 this year. As its competitor, Intel, struggled to get aboard the AI train and saw its CEO exit at the end of 2024, AMD has worked with foundry TSMC to produce several generations of powerful Epyc processors. It's worth noting, though, that Intel has a new CEO, Lip-Bu Tan, and it's not just sitting around while AMD scores wins. Intel recently dropped the prices on its Xeon 6 CPUs. In some cases, the company dropped the MSRPs by as much as 30%—which is downright stunning and a direct challenge to AMD's Epyc chips.
