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Channel Post MEA
15-05-2025
- Business
- Channel Post MEA
AMD And HUMAIN Sign $10B Deal To Advance Global AI
AMD and HUMAIN have announced a landmark agreement to build the world's most open, scalable, resilient, and cost-efficient AI infrastructure, that will power the future of global intelligence through a network of AMD-based AI computing centers stretching from the Kingdom of Saudi Arabia to the United States. As part of the agreement, the parties will invest up to $10B to deploy 500 megawatts of AI compute capacity over the next five years. The AI superstructure built by AMD and HUMAIN will be open by design, accessible at scale, and optimized to power AI workloads across enterprise, start-up and sovereign markets. HUMAIN will oversee end-to-end delivery, including hyperscale data center, sustainable power systems, and global fiber interconnects, and AMD will provide the full spectrum of the AMD AI compute portfolio and the AMD ROCm open software ecosystem. 'At AMD, we have a bold vision to enable the future of AI everywhere – bringing open, high-performance computing to every developer, AI start-up and enterprise around the world,' said Dr. Lisa Su, Chair and CEO, AMD. 'Our investment with HUMAIN is a significant milestone in advancing global AI infrastructure. Together, we are building a globally significant AI platform that delivers performance, openness and reach at unprecedented levels.' 'This is not just another infrastructure play – it's an open invitation to the world's innovators,' said Tareq Amin, CEO of HUMAIN. 'We are democratizing AI at the compute level, ensuring that access to advanced AI is limited only by imagination, not by infrastructure.' With initial deployments already underway across key global regions, the collaboration is on track to activate multi-exaflop capacity by early 2026, supported by next-gen AI silicon, modular data center zones, and a developer-enablement focused software platform stack built around open standards and interoperability. Full-Spectrum AI at Scale The collaboration will deliver a market-defining value proposition by combining the Kingdom's energy resources, AI-ready workforce and forward-looking national AI policies with the AMD full-spectrum AI stack including: AMD Instinct GPUs, with industry-leading memory and inference performance. AMD EPYC CPUs, offering world-class compute density and energy efficiency. AMD Pensando DPUs, enabling scalable, secure, and programmable networking. AMD Ryzen AI, bringing on-device AI compute to the edge. AMD ROCm open software ecosystem with built-in support for all AI frameworks (PyTorch, SGLang, etc.) 0 0
Yahoo
12-04-2025
- Business
- Yahoo
Can Palantir Outperform NVIDIA, and Should You Buy the Stock?
The advent of artificial intelligence (AI) has made semiconductor behemoth NVIDIA Corporation NVDA and data-mining specialist Palantir Technologies Inc. PLTR Wall Street darlings, with their shares witnessing massive gains. But this year, NVIDIA's shares have fallen 15.1%, while Palantir's shares have gained 21.5% amid Trump tariff woes. Does this mean Palantir has more growth potential and investment appeal? Let's explore – Image Source: Zacks Investment Research NVIDIA's share of over 80% in the growing graphics processing unit (GPU) market gives the company a competitive edge over its peers. Among the developers, NVIDIA's CUDA software platform is in more demand than Advanced Micro Devices, Inc.'s AMD ROCm software platform. The change is unlikely due to the complexity of infrastructure transitions. There is insane demand for NVIDIA's both new and older chips. The new-generation Blackwell chips with faster AI interfaces are popular among prominent tech firms. Meanwhile, the older Hopper chips maintained steady demand due to their superior quality compared to rival Intel Corporation INTC. AI data center spending is also rising, a boon for NVIDIA. Major cloud computing stocks are poised to invest nearly $250 billion in AI data center infrastructure, purchasing GPUs to meet the growing demand for AI workloads. For now, Microsoft Corporation MSFT, one of NVIDIA's primary customers, has scaled back on some of the data center projects. However, competitors Inc. AMZN and Alphabet Inc. GOOGL have stepped in to fill the gap for NVIDIA. Palantir's Artificial Intelligence Platform (AIP) has been a grand success among existing and new customers owing to its capability to automate tasks beyond human capacity. AIP helps its clients decode complex information by applying generative AI in the decision-making workflows. From International Data Corp. to Forrester Research, AIP's prowess was praised by all. Palantir saw a 43% increase in customer count in the fourth quarter, thanks to AIP's popularity. Its customer base expanded into the private sector beyond government clients, boosting revenue growth. The company's revenues rose 36% in the fourth quarter, with Palantir expecting revenues to increase 31% year over year in the current year. Moreover, the company's remaining performance obligation in the fourth quarter surpassed current revenue growth, indicating strong upcoming growth. Dominance in the GPU market, persistent demand for chips, and an uptick in AI infrastructure spending should help the NVIDIA stock scale upward in the long term. Lest we forget, the company has a price/earnings-to-growth (PEG) ratio of 0.85. Any reading below 1 signifies that the stock is undervalued and has the potential to rise when the market realizes its true worth. Maybe that's why brokers have raised NVIDIA's average short-term price target by 82.9% to $176.15 from the previous $96.30. Image Source: Zacks Investment Research On the other hand, Palantir's top customer, the government, is cutting spending due to uncertainty about future software budgets. The Trump administration has asked DOGE to trim its budget by 8% each year for the next five years, hampering Palantir's growth. To top it off, Palantir is trading at a forward price-to-earnings (P/E) ratio of 165.49, which is quite expensive for a company whose earnings are projected to grow 37% in 2025. So, Palantir has set a high bar for itself, but the overvalued stock could crash if business objectives aren't met. Therefore, it's premature to expect Palantir stock to outperform NVIDIA soon. Brokers are also skeptical about Palantir's growth story as they have raised the stock's average short-term price target by only 9.3% to $84.53 from the previous $77.32. Image Source: Zacks Investment Research Given such uncertainty, new entrants should avoid investing in Palantir stock as of now. However, those who have invested may hold onto the stock since an increase in customer base on AIP acceptance is good news for Palantir. Palantir currently has a Zacks Rank #3 (Hold), whereas NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (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 Inc. (AMZN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
12-04-2025
- Business
- Yahoo
Which AI Stock, NVIDIA or Broadcom, Is the Better Bargain to Buy?
Advancements in artificial intelligence (AI) have made NVIDIA Corporation NVDA a Wall Street darling for some time. On the other hand, Broadcom Inc.'s AVGO recent share repurchase plan, along with its planned moves to capitalize on the growing AI field, has delighted income-oriented investors. However, the latest trade war between the United States and several other countries has caused market turmoil, with shares of NVIDIA and Broadcom declining 19.9% and 25.7% year to date. This presents an opportunity to buy these quality stocks at a discounted price for long-term gains. But which stock is the better bargain? Let's explore – Image Source: Zacks Investment Research NVIDIA leads the growing graphics processing unit (GPU) market with over 80% share, giving the Jensen Huang-led company a competitive edge over its peers. More than Advanced Micro Devices, Inc.'s AMD ROCm software platform, NVIDIA's CUDA software platform is in demand among developers. At the same time, there is an insane demand for NVIDIA's new Blackwell chips among notable tech firms due to their energy efficiency and faster AI interfaces. The older Hopper chips also maintain steady demand due to their higher quality compared to rival Intel Corporation's INTC chips (read more: Can Intel Be the Turnaround Stock of 2025? Is the Time to Buy Now?). NVIDIA, meanwhile, is well-poised to make the most of the increase in AI data center spending. Top cloud computing stocks are fulfilling the increase in demand for AI workloads by acquiring GPUs and are spending $250 billion on AI data center infrastructure. One of NVIDIA's prominent customers, Microsoft Corporation MSFT, may have reduced data center spending, but Alphabet Inc. GOOGL and Inc. AMZN are now supporting NVIDIA in this aspect. Broadcom expects the demand for its custom AI accelerator to increase in the near future and the market size for its execution processing units (XPUs) to touch $60-90 billion by fiscal 2027, way higher than last year's $12.2 billion. Broadcom's XPUs can work on a particular workload and even outdo NVIDIA's GPUs. Moreover, they have the competence to perform tasks more affordably than GPUs. Thus, banking on the rise in demand for accelerator chips, Broadcom is now developing a 2-nanometer AI XPU, which is unique. The company's application-specific integrated chips (ASICs), known to support AI and machine learning, are witnessing strong demand as well. No doubt, with GPUs and XPUs gaining popularity in the coming years, and AI infrastructure spending increasing, the future does look bright for both NVIDIA and Broadcom. However, from a long-term perspective, NVIDIA is a better choice than Broadcom. This is because NVIDIA has been able to generate profits more proficiently than Broadcom, with its net profit margin coming in at 55.9%, more than AVGO's 18.5%. Image Source: Zacks Investment Research NVIDIA has also been able to control its expenditures and generate profits in a much better way than Broadcom since its return on equity (ROE) of 117.6% outshined AVGO's 38.5%. Image Source: Zacks Investment Research But from a short-term viewpoint, Broadcom has an upper hand over NVIDIA. After all, Broadcom is a solid dividend payer, which is indicative of a better-quality business that can keep the company immune to the current market vagaries. Broadcom has increased its dividends 6 times over the past five years, and its payout ratio sits at a healthy 52% of earnings. Broadcom also has sufficient cash balance to pay off its dividends. Check Broadcom's dividend history here. On the contrary, NVIDIA's payout ratio sits at a paltry 1% of earnings and the company increased dividends only once in the past five years. Check NVIDIA's dividend history here. NVIDIA presently has a Zacks Rank #2 (Buy), whereas Broadcom carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 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 Inc. (AMZN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
11-03-2025
- Business
- Yahoo
Which AI stock, NVIDIA or Broadcom, is a Better Buy Now?
With the arrival of artificial intelligence (AI), both NVIDIA Corporation NVDA and Broadcom Inc.'s AVGO shares have scaled upward. However, to manage AI workloads, Broadcom's custom AI accelerators, designed in collaboration with Alphabet Inc. GOOGL, compete directly with NVIDIA's graphic processing units (GPUs). In this context, let's explore which one of them has the upper hand and is a better buy. The threat from DeepSeek's cost-efficient large language model has been blown out of proportion, and it shouldn't have a long-term impact on NVIDIA. This is because low-cost models will, in due course, drive more use of computing power and assist NVIDIA. The semiconductor giant, nevertheless, has the necessary resources to create affordable products and enhance the AI ecosystem. Developers at the moment prefer NVIDIA's CUDA software platform more than Advanced Micro Devices, Inc.'s AMD ROCm software platform. Moreover, any change from CUDA to ROCm is unlikely due to the unmanageable infrastructure transitions. NVIDIA's market leadership in the GPU market has already given the company a competitive edge and will drive future growth. Additionally, NVIDIA's latest quarterly sales for the Blackwell AI processor exceeded Wall Street expectations due to its insane demand. This demand is likely to persist thanks to Blackwell's faster AI interface and enhanced efficiency. Strong demand for Broadcom's custom AI accelerators and application-specific integrated chips is set to drive revenue growth. Broadcom expects to tap into the demand for custom AI accelerators, projecting a market size of $60 billion to $90 billion by 2027. Broadcom's revenues from custom AI accelerators and connectivity switches were $12.2 billion in fiscal 2024, up 220% from fiscal 2023. Broadcom expects AI revenues to grow for the first quarter of the fiscal year 2025. Acquiring VMware has benefited Broadcom's infrastructure software solutions. The company has added more than 4500 of its top customers to VMware Cloud Foundation for deploying private cloud environments on-premises. Moreover, Broadcom has generated substantial cash flows in fiscal 2024, which enabled it to pay out dividends. The company also spent on share repurchases as management remained confident about future earnings. Ebbing DeepSeek concerns, GPU dominance, and high demand for Blackwell chips will continue to boost NVIDIA. On the other hand, strong demand for custom AI accelerators will benefit Broadcom. However, Broadcom's custom AI accelerators can't outperform NVIDIA's GPUs because they work best when a workload is primarily assigned to run through a Broadcom-designed accelerator. Unlike NVIDIA, Broadcom has a much broader business. But it's the AI hardware segment that drove sales growth in the fiscal year 2024, while its other segments struggled. Moreover, its revenue growth in the fiscal year 2024 is nothing compared to NVIDIA's revenue growth of $130.5 billion in fiscal 2025, up 114% year over year. NVIDIA's higher revenue growth makes it a better buy than Broadcom currently. To top it off, buying NVIDIA stock is a more cost-effective option compared to Broadcom. After all, per the price/earnings ratio, NVDA trades at 25.6X forward earnings. In comparison, AVGO's forward earnings multiple is 30.83. Image Source: Zacks Investment Research NVIDIA stock, rightfully, has a Zacks Rank #2 (Buy). Broadcom stock has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank 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 Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
