Latest news with #Instinct
Yahoo
17 hours ago
- Business
- Yahoo
AMD takes aim at Nvidia's AI hardware dominance with Brium acquisition
AMD's latest acquisition could help reduce Nvidia's market dominance when it comes to AI hardware. Semiconductor giant AMD on Wednesday announced it acquired AI software optimization startup Brium. Terms of the deal were not disclosed. Brium is a startup that appears to be in stealth mode. The startup builds machine learning applications to enable AI inference, the process a trained AI model uses to draw conclusions from new data, across a variety of different hardware options, according to a blog post on Brium's bare-bones website. Cutting through that jargon a bit, Brium can help retrofit AI software to work with different AI hardware than it might have been designed for originally. In a press release, AMD said its acquisition of Brium will help its commitment to "building a high-performance, open AI software ecosystem that empowers developers and drives innovation." While AMD is saying that this acquisition helps create a more open AI ecosystem, which isn't wrong, it seems clear that it's also meant to help AMD overcome one of its biggest roadblocks: a large percentage of AI software is being designed for Nvidia hardware and chips. Brium's sole blog post, which came out in November 2024, talked about the industry's reliance on Nvidia and called out AMD specifically. "In recent years, the hardware industry has made strides towards providing viable alternatives to Nvidia hardware for server-side inference," the blog post reads. "Solutions such as AMD's Instinct GPUs offer strong performance characteristics, but it remains a challenge to harness that performance in practice as workloads are typically tuned extensively with Nvidia GPUs in mind. At Brium, we intend to enable efficient [model] inference across a range of hardware architectures." This is AMD's fourth strategic acquisition in the past two years, with the company's goal being to foster an open source AI ecosystem, according to the press release. The company previously acquired Silo AI (in July 2024), (October 2023), and Mipsology (August 2023). TechCrunch has reached out to AMD for more information. 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
Yahoo
18-05-2025
- Business
- Yahoo
2 Artificial Intelligence (AI) Stocks I'm Buying If the Market Crashes
Nvidia's stock has soared thanks to its dominance in artificial intelligence (AI) hardware. SoundHound AI is in the early innings of exploring a huge target market. Both stocks are promising but also expensive, and they could use a quick price correction. 10 stocks we like better than SoundHound AI › I don't know where the stock market is going in 2025. Wall Street has been an unpredictable place lately -- and short-term market trends are coin-flip bets in the best of times. But I do know that a couple of artificial intelligence (AI) investments look ready for a price correction right now. And I wouldn't mind holding them for the long haul. Their business prospects are great in the long run, and the stocks should serve my portfolio nicely even if I pick them up at inflated share prices. Still, I'd much rather wait for the next market retreat from high-flying growth stocks. These top-notch AI experts may look good now, but they'd be even better ideas at a lower price. Will the next bear market start in 2025? I'm not sure, but I want to pounce on these ideas if and when it happens. Semiconductor designer Nvidia (NASDAQ: NVDA) has made a lot of investors very happy in recent years. Formerly known as a gaming hardware specialist with a side gig in large-scale number-crunching chips, Nvidia emerged as the leading provider of AI accelerator equipment in 2022. Its accelerators were used to train OpenAI's ChatGPT 3 system, which opened the doors for the AI boom that still feels fresh and game-changing in 2025. The stock market was quick to embrace Nvidia's newfound AI success. Share prices soared more than 800% higher over the first two years of the ChatGPT era. The bullish move was more than empty speculation, too: Nvidia quadrupled its annual revenues over the same period, while free cash flows surged 1,380% higher. So Nvidia's business is booming, and many investors expect its AI dominance to continue for many years. The stock price has dropped back roughly 10% from February's all-time highs, but it's still a big winner from a long-term perspective. And Nvidia's stock is still priced for perfection. It trades at 25 times trailing sales and 54 times free cash flows. That's a lot, even for a fast-growing tech titan. All of this would be fine if Nvidia stood alone and unchallenged on this lofty hill, but that's not the situation at all. Longtime rival Advanced Micro Devices (NASDAQ: AMD) stands out as a threat to Nvidia's AI dominance. Its Instinct series of AI accelerators is often comparable to Nvidia's latest and greatest AI chips, especially when you include AMD's lower pricing in the calculation. Other potential challengers to Nvidia's most lucrative AI deals include AI-service leaders such as Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) Web Services (AWS). Yes, the largest-volume AI chip buyers have developed their own hardware in order to cut costs while satisfying very specific performance targets or feature sets. So I'm afraid that Nvidia's stock may be overvalued right now, despite the company's proven success and incredible long-term prospects. I might consider buying Nvidia stock again if the stock price steps down by another 20% to 30%. Wake me up if a broad de-risking of Wall Street takes Nvidia's price down to approximately $100 per share. Even that would be a stretch -- I'm just setting loose limits for reconsidering my Nvidia view. Until then, I'd rather keep my money on the sidelines. If you agree that Nvidia's stock might be overpriced, you ain't seen nothing yet. SoundHound AI (NASDAQ: SOUN) makes AI's shares look affordable. The AI services pioneer is unprofitable, and the stock trades at 44 times sales. However, the company's high-quality interface between the human voice and automated computer systems could be the next big thing in Next Big Things(tm), if you know what I mean. The company is off to a great start. The recent first-quarter earnings report showed SoundHound AI's revenues surging 151% above the year-ago period. Management expects full-year sales to reach approximately $167 million in 2025, nearly doubling last year's $85.7 million. Early clients included automaker Stellantis and digital media veteran Pandora, now a division of Sirius XM Holdings. Over the last three years, SoundHound AI's market expansion accelerated with new names such as digital payments giant Block, Mexican food specialist Chipotle Mexican Grill, and home electronics leader LG. I'm just scratching the surface of SoundHound AI's rich customer list, and the voice-driven services have started to roll out on a global scale -- one SoundHound AI client at a time. It's a diverse list of partners. You can find SoundHound AI's voice-driven services at local drive-thru windows, in customer service phone menus, and interactions with your favorite smart home gadgets. If that sounds like a huge market opportunity, you'll understand why I'm excited about SoundHound AI's long-term future. At the same time, you've seen the ultra-expensive stock. SoundHound AI may be the best name in the voice controls business, but it's far from the only option, and many of its potential rivals are tech titans like Alphabet or Amazon. SoundHound AI's success is not guaranteed, and the stock price should reflect a significant risk-based discount. It's been four months since I said SoundHound AI would look like a buy at $7 per share. Not much has changed since then. SoundHound AI's stock is down 20% from the middle of January, but the current $11 price remains far above my $7 starting-price target. Like Nvidia, SoundHound AI should be sensitive to marketwide risk adjustments. The next sustained downturn could be just what my price-sensitive stock-picking fingers are looking for. Until then, I'm just holding the shares I already own. 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 $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — 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 May 12, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Alphabet, Amazon, Nvidia, and SoundHound AI. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Block, Chipotle Mexican Grill, and Nvidia. The Motley Fool recommends Stellantis and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. 2 Artificial Intelligence (AI) Stocks I'm Buying If the Market Crashes was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
17-05-2025
- Business
- Yahoo
1 Semiconductor Stock That Could Be a Surprise AI Winner
AMD's EPYC processors are increasingly used by cloud providers and Fortune 2000 enterprises. The chipmaker is building next-generation products to support AI models right out of the box. Elsewhere in AMD's business, its gaming and PC chips are also seeing strong demand. 10 stocks we like better than Advanced Micro Devices › Advanced Micro Devices (NASDAQ: AMD) is gradually evolving from mostly a traditional chip company to a prominent artificial intelligence (AI) infrastructure player. While Wall Street has been mostly focusing on Nvidia, AMD has quietly established itself as a strong player in the AI data center business. The company provides high-performance computing hardware and software solutions to clients for processing cloud and AI workloads. In the first quarter of 2025, data center revenue grew 57% year over year to $3.67 billion, making up almost half of AMD's total revenue. Data center AI business revenue also increased by a double-digit percentage year over year, driven by increased shipments of the MI325X accelerators for new cloud and enterprise workloads. With AI inferencing costs escalating rapidly, AMD is in a better position to capture a bigger share of the AI market. Its Instinct GPUs are known to offer superior price performance than competitors. Here are some more reasons why the company may prove to be a surprise AI winner in 2025. AMD's data center business is experiencing robust momentum, driven by solid demand for its EPYC server processors and Instinct AI accelerators. AMD accounted for 25.1% share of the server CPU market, up 2 percentage points year over year, as EPYC server processors continue to be in high demand from both cloud players and enterprise customers. All major cloud players are engaging with the company in the development of fifth-generation EPYC CPUs, codenamed "Turin." EPYC processors are also in high demand from enterprise customers across a range of industries and functions. The company expects enterprise adoption of EPYC processors to further accelerate, as more than 150 server platforms using these chips will become broadly available in the coming quarters. The company's data center AI business is also gaining traction. Multiple Tier 1 cloud and enterprise customers have opted for AMD's Instinct AI accelerators in the first quarter. These clients include one of the largest frontier model developers, which has deployed Instinct GPUs to cater to a significant portion of its daily AI inferencing workloads. AMD has also started sampling the next-generation MI350 series GPUs with several customers and is on track for production by mid-2025. With MI350 offering higher performance, memory capacity, bandwidth, support for new data types, and network efficiency as compared to the MI300 series, AMD expects strong deployment for these chips in the second half of 2025. Furthermore, the company is gearing up for the launch of MI400 series GPUs in 2026. AMD is also focusing on strengthening its software ecosystem, mainly its ROCm software stack for programming the company's GPUs. Instead of releasing quarterly ROCm updates, the company is now delivering them on a biweekly basis. The company has also increased access to its Instinct compute infrastructure for open-source developers to build, test, and deploy updates to the ROCm stack on a nightly basis. Subsequently, 2 million models on the open-source Hugging Face platform are running directly on AMD hardware without needing any special customization. The company is also ensuring that newly released AI models can run without hiccups on Instinct accelerators immediately after launch. Finally, the recent acquisition of ZT Systems is enabling AMD to sell fully integrated AI systems, instead of just hardware components. All these AI initiatives can dramatically expand AMD's data center business in the coming years. AMD's client segment also reported a strong 68% year-over-year revenue jump to $2.3 billion in the first quarter. The company experienced record client CPU average selling prices (ASPs), driven by increased demand for its high-end desktop and Ryzen processors in gaming and commercial segments. While AMD's processors are increasingly adopted in gaming desktops, the company is also seeing rising demand in the mobile computing market. Furthermore, sales of the company's latest-generation AI-capable processors also grew more than 50% quarter over quarter in the first quarter. AMD is also making its presence felt in the commercial PC space, with the company closing deals with large enterprises across several industries. Despite the solid tailwinds, AMD's shares are currently trading at 21.7 times forward earnings, significantly lower than Nvidia's forward P/E multiple of 25.4. While investors should not ignore the short-term revenue headwind arising from the export control restrictions for Instinct MI308 shipments to China, the fundamentals of the company are still strong. Hence, with a diversified product portfolio spanning various segments such as data center, gaming, and client; a robust balance sheet with $7.3 billion in cash; and a reasonable valuation position, AMD appears an attractive pick now. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advanced Micro Devices 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 $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 959% — a market-crushing outperformance compared to 170% 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 May 12, 2025 Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. 1 Semiconductor Stock That Could Be a Surprise AI Winner was originally published by The Motley Fool
Yahoo
16-05-2025
- Business
- Yahoo
Is AMD Stock Due for a Big Rally After Its Earnings Beat?
AMD's growth rate showed a big improvement in Q1. Management anticipates that restrictions on chip exports to China will cut its top line by as much as $1.5 billion this year. 10 stocks we like better than Advanced Micro Devices › Advanced Micro Devices (NASDAQ: AMD), also known as AMD, reported earnings on May 6, and they were impressive. The chipmaker has been showing signs of progress and a faster growth rate. That could be indicative of the competition that its chips may offer to rival Nvidia, potentially giving the tech giant something to worry about. AMD's stock has been struggling over the past couple of years, while Nvidia has been soaring. But with stronger results and some encouraging growth prospects, is it now time for AMD's stock to shine? Could the company's recent earnings numbers be a catalyst to drive its valuation far higher this year? AMD's first-quarter report delivered something growth investors have been craving for a while now -- strong growth numbers. Revenue rose by 36% year over year to $7.4 billion. That was the company's fastest rate of growth in more than two years, and the top line came in better than the $7.1 billion that Wall Street was expecting. The big catalyst for the business was its data center segment, which experienced a 57% growth rate during the period. This was due in part to strong demand for its Instinct chip; the company launched its newest version, the Instinct MI325X, in the fall of last year and said at the time that it would be shipping it in large quantities in the early part of 2025. The Q1 results could be the first sign that the chips are winning over customers and may be able to take some market share from Nvidia. Shares of AMD rallied in the days following the earnings release. However, it may not necessarily be smooth sailing for the chipmaker due to a couple of issues. The first pertains to the ongoing trade war between the U.S. and China. Due to U.S. export restrictions on China, AMD expects to miss out on $1.5 billion in potential revenue this year. Recently, however, there have been reports that the two nations are making progress on a potential trade deal and have paused most of the heavy tariffs they have levied on each other for 90 days. The uncertainty makes it difficult to predict how AMD will do this year. It's an evolving situation that investors should closely monitor. Another issue is that AMD's valuation remains high at 75 times its trailing earnings. The good news is that the ratio drops to 25 when looking at its future earnings (based on analysts' consensus expectations). But when you consider that Nvidia's forward price-to-earnings multiple is just under 27, that may not be enough of a discount to convince investors to go with AMD instead of its bigger rival. AMD's stock is down by close to 30% from where it traded a year ago, but it has been rising recently and could head higher, especially if the company can build on its Q1 results and accelerate its growth rate. But that's not a guarantee by any means, given the uncertainty around tariffs and the ongoing trade war with China. AMD could be a good artificial intelligence (AI) stock to own, but it's a riskier option than Nvidia, which has stronger margins and a dominant position in the AI chip market. Depending on your risk tolerance, you may want to go with AMD, Nvidia, or perhaps even hold both in your portfolio. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advanced Micro Devices 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 $613,951!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $796,353!* Now, it's worth noting Stock Advisor's total average return is 948% — a market-crushing outperformance compared to 170% 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 May 12, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Is AMD Stock Due for a Big Rally After Its Earnings Beat? 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
Globe and Mail
15-05-2025
- Business
- Globe and Mail
Is AMD Stock Due for a Big Rally After Its Earnings Beat?
Advanced Micro Devices (NASDAQ: AMD), also known as AMD, reported earnings on May 6, and they were impressive. The chipmaker has been showing signs of progress and a faster growth rate. That could be indicative of the competition that its chips may offer to rival Nvidia, potentially giving the tech giant something to worry about. AMD's stock has been struggling over the past couple of years, while Nvidia has been soaring. But with stronger results and some encouraging growth prospects, is it now time for AMD's stock to shine? Could the company's recent earnings numbers be a catalyst to drive its valuation far higher this year? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » AMD's fastest growth since 2022 AMD's first-quarter report delivered something growth investors have been craving for a while now -- strong growth numbers. Revenue rose by 36% year over year to $7.4 billion. That was the company's fastest rate of growth in more than two years, and the top line came in better than the $7.1 billion that Wall Street was expecting. AMD Operating Revenue (Quarterly YoY Growth) data by YCharts. The big catalyst for the business was its data center segment, which experienced a 57% growth rate during the period. This was due in part to strong demand for its Instinct chip; the company launched its newest version, the Instinct MI325X, in the fall of last year and said at the time that it would be shipping it in large quantities in the early part of 2025. The Q1 results could be the first sign that the chips are winning over customers and may be able to take some market share from Nvidia. What could hinder the stock Shares of AMD rallied in the days following the earnings release. However, it may not necessarily be smooth sailing for the chipmaker due to a couple of issues. The first pertains to the ongoing trade war between the U.S. and China. Due to U.S. export restrictions on China, AMD expects to miss out on $1.5 billion in potential revenue this year. Recently, however, there have been reports that the two nations are making progress on a potential trade deal and have paused most of the heavy tariffs they have levied on each other for 90 days. The uncertainty makes it difficult to predict how AMD will do this year. It's an evolving situation that investors should closely monitor. Another issue is that AMD's valuation remains high at 75 times its trailing earnings. The good news is that the ratio drops to 25 when looking at its future earnings (based on analysts' consensus expectations). But when you consider that Nvidia's forward price-to-earnings multiple is just under 27, that may not be enough of a discount to convince investors to go with AMD instead of its bigger rival. Is AMD stock a good buy today? AMD's stock is down by close to 30% from where it traded a year ago, but it has been rising recently and could head higher, especially if the company can build on its Q1 results and accelerate its growth rate. But that's not a guarantee by any means, given the uncertainty around tariffs and the ongoing trade war with China. AMD could be a good artificial intelligence (AI) stock to own, but it's a riskier option than Nvidia, which has stronger margins and a dominant position in the AI chip market. Depending on your risk tolerance, you may want to go with AMD, Nvidia, or perhaps even hold both in your portfolio. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices 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 $613,951!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $796,353!* Now, it's worth noting Stock Advisor 's total average return is948% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 12, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.
