Latest news with #InstinctMI325X
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
Yahoo
14-05-2025
- Business
- Yahoo
TensorWave raises $100M to grow its AMD-powered cloud infrastructure
TensorWave, a data center provider building facilities primarily with AMD hardware, has raised $100 million as it seeks to further build out its data center infrastructure. The funding round was led by Magnetar and AMD Ventures, and brings the company's total capital raised to $146.7 million, according to Crunchbase. Maverick Silicon, Nexus Venture Partners and Prosperity7 also participated in the round. It's a precarious time for data center projects. Tariff-related price hikes on components like server racks and chips could contribute to overall data center build costs increasing by 5% to 15%, per an analysis by TD Cowen. Investors are also wary of such projects accumulating too much capacity, particularly as the number of cheap AI services continues to grow. Overcapacity is reportedly one of the factors delaying OpenAI's ambitious $500-billion Stargate data center project. Las Vegas, Nevada-based TensorWave claims that it hasn't seen a slowdown in business, however. The company is on track to end the year with run-rate revenue of more than $100 million, which would mark a 20x increase from a year earlier, according to CEO Darrick Horton (pictured above; in the middle). Nvidia is the favored hardware vendor for data centers that are used for training and running AI models. But TensorWave embraced AMD early on, aiming to provide cloud services at lower prices. TensorWave recently deployed a "dedicated training" cluster of around 8,000 AMD Instinct MI325X GPUs. The new capital will enable the company to grow that cluster, as well as expand headcount and support "operational growth," said Horton. TensorWave has a team of around 40 people at present, and expects headcount to reach over 100 by the end of the year. "This $100 million funding propels TensorWave's mission to democratize access to cutting-edge AI compute," Horton added. "Our 8,192 Instinct MI325X GPU cluster marks just the beginning as we establish ourselves as the emerging AMD-powered leader in the rapidly expanding AI infrastructure market." Other data center providers placing bets on AMD's AI chips range from startups like Lamini and Nscale to larger, more entrenched cloud providers such as Azure and Oracle. Horton co-founded TensorWave with Jeff Tatarchuk (pictured above; on the left) and Piotr Tomasik (pictured above; on the right) in 2023. Tatarchuk had previously launched cloud vendor VMAccel with Horton, and sold another startup, Lets Rolo, to digital identity firm LifeKey. Horton co-founded crypto mining company VaultMiner Technologies, VMAccel's corporate parent. As for Tomasik, he co-launched influencer marketer site Influential, and is the second co-founder of Lets Rolo. This article originally appeared on TechCrunch at 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
14-05-2025
- Business
- Yahoo
TensorWave Secures $100 Million Series A Funding Co-Led by Magnetar and AMD Ventures
Funding Fuels Rapid Deployment of Massive AMD Instinct MI325X GPU Training Cluster and Supports Scaling for Surging AI Infrastructure Needs LAS VEGAS, May 14, 2025--(BUSINESS WIRE)--TensorWave, the emerging leader in AMD-powered AI infrastructure solutions, today announced it has raised $100 million in Series A funding. Magnetar and AMD Ventures led the round, with continued support from Maverick Silicon, Nexus Venture Partners, and new investor Prosperity7. This funding builds on the company's earlier SAFE round and positions TensorWave to capitalize on the growing demand for next-gen AI compute infrastructure. The investment aligns with TensorWave's deployment of over 8,000 AMD Instinct™ MI325X GPUs for a dedicated training cluster, establishing the company as a key player in the AI infrastructure ecosystem. TensorWave is on track to close the year with a revenue run rate exceeding $100 million — a 20x year-over-year increase. "This $100M funding propels TensorWave's mission to democratize access to cutting-edge AI compute," said Darrick Horton, CEO of TensorWave. "Our 8,192 Instinct MI325X GPU cluster marks just the beginning as we establish ourselves as the emerging AMD-powered leader in the rapidly expanding AI infrastructure market." The new capital will fuel TensorWave's operational growth, team expansion, and the accelerated deployment of its Instinct MI325X-powered training cluster. This growth comes at a pivotal moment, as demand for AI computing resources continues to outstrip supply and organizations seek alternatives to limited infrastructure options. "The $100 million we've secured will transform how enterprises access AI computing resources," said Piotr Tomasik, President of TensorWave. "Through careful cultivation of strategic partnerships and investor relationships, we've positioned TensorWave to solve the critical infrastructure bottleneck facing AI adoption. Our Instinct MI325X cluster deployment isn't just about adding capacity, it's about creating an entirely new category of enterprise-ready AI infrastructure that delivers both the memory headroom and performance reliability that next-generation models demand." "Our focus is to continue to expand the ecosystem and support developers with the tools, infrastructure, and performance they need to create, scale, and ship production-ready AI," shares Jeff Tatarchuk, TensorWave's Chief Growth Officer. AMD Ventures' strategic investment in TensorWave reinforces the commitment of AMD to expand its footprint in the AI infrastructure space and ensures its latest technologies are available in the cloud and at-scale for leading AI companies and enterprises. "TensorWave is a key player in the growing AMD AI ecosystem," said Mathew Hein, SVP Chief Strategy Officer & Corporate Development, AMD. "Their expanding portfolio of AI and enterprise customers coupled with their expertise in deploying AMD compute infrastructure is driving demand for access to their cutting-edge AI compute services. We're excited to support their next phase of growth." "We continue to be highly impressed by what the TensorWave team has built in just a short period of time. TensorWave is not just bringing more compute but rather an entirely new class of compute to a capacity-constrained market. We think this will be highly beneficial to the AI infrastructure ecosystem writ large, and we're thrilled to continue our support of the company," said Kenneth Safar, Managing Director at Maverick Silicon. The funding comes at a time when the AI infrastructure market is experiencing unprecedented growth, with recent industry reports projecting the AI infrastructure market to exceed $400 billion by 2027. TensorWave's focus on technology-powered solutions and continued partnerships with firms like TECFusions positions the company to capture a significant portion of this expanding market. For additional information please visit: About TensorWave TensorWave is the AI and HPC cloud purpose-built for performance. Powered exclusively by AMD Instinct™ Series GPUs, we deliver high-bandwidth, memory-optimized infrastructure that scales with your most demanding models—training or inference. For more information please visit View source version on Contacts Media Contact: press@ Sign in to access your portfolio
Business Wire
14-05-2025
- Business
- Business Wire
TensorWave Secures $100 Million Series A Funding Co-Led by Magnetar and AMD Ventures
LAS VEGAS--(BUSINESS WIRE)-- TensorWave, the emerging leader in AMD-powered AI infrastructure solutions, today announced it has raised $100 million in Series A funding. Magnetar and AMD Ventures led the round, with continued support from Maverick Silicon, Nexus Venture Partners, and new investor Prosperity7. This funding builds on the company's earlier SAFE round and positions TensorWave to capitalize on the growing demand for next-gen AI compute infrastructure. Funding Fuels Rapid Deployment of Massive AMD Instinct MI325X GPU Training Cluster and Supports Scaling for Surging AI Infrastructure Needs Share The investment aligns with TensorWave's deployment of over 8,000 AMD Instinct™ MI325X GPUs for a dedicated training cluster, establishing the company as a key player in the AI infrastructure ecosystem. TensorWave is on track to close the year with a revenue run rate exceeding $100 million — a 20x year-over-year increase. "This $100M funding propels TensorWave's mission to democratize access to cutting-edge AI compute," said Darrick Horton, CEO of TensorWave. "Our 8,192 Instinct MI325X GPU cluster marks just the beginning as we establish ourselves as the emerging AMD-powered leader in the rapidly expanding AI infrastructure market.' The new capital will fuel TensorWave's operational growth, team expansion, and the accelerated deployment of its Instinct MI325X-powered training cluster. This growth comes at a pivotal moment, as demand for AI computing resources continues to outstrip supply and organizations seek alternatives to limited infrastructure options. 'The $100 million we've secured will transform how enterprises access AI computing resources," said Piotr Tomasik, President of TensorWave. "Through careful cultivation of strategic partnerships and investor relationships, we've positioned TensorWave to solve the critical infrastructure bottleneck facing AI adoption. Our Instinct MI325X cluster deployment isn't just about adding capacity, it's about creating an entirely new category of enterprise-ready AI infrastructure that delivers both the memory headroom and performance reliability that next-generation models demand.' 'Our focus is to continue to expand the ecosystem and support developers with the tools, infrastructure, and performance they need to create, scale, and ship production-ready AI,' shares Jeff Tatarchuk, TensorWave's Chief Growth Officer. AMD Ventures' strategic investment in TensorWave reinforces the commitment of AMD to expand its footprint in the AI infrastructure space and ensures its latest technologies are available in the cloud and at-scale for leading AI companies and enterprises. 'TensorWave is a key player in the growing AMD AI ecosystem,' said Mathew Hein, SVP Chief Strategy Officer & Corporate Development, AMD. 'Their expanding portfolio of AI and enterprise customers coupled with their expertise in deploying AMD compute infrastructure is driving demand for access to their cutting-edge AI compute services. We're excited to support their next phase of growth.' 'We continue to be highly impressed by what the TensorWave team has built in just a short period of time. TensorWave is not just bringing more compute but rather an entirely new class of compute to a capacity-constrained market. We think this will be highly beneficial to the AI infrastructure ecosystem writ large, and we're thrilled to continue our support of the company,' said Kenneth Safar, Managing Director at Maverick Silicon. The funding comes at a time when the AI infrastructure market is experiencing unprecedented growth, with recent industry reports projecting the AI infrastructure market to exceed $400 billion by 2027. TensorWave's focus on technology-powered solutions and continued partnerships with firms like TECFusions positions the company to capture a significant portion of this expanding market. For additional information please visit:
Globe and Mail
01-04-2025
- Business
- Globe and Mail
M&A News: AMD Boosts AI Infrastructure with ZT Systems Acquisition
Advanced Micro Devices (AMD) has completed its $4.9 billion acquisition of ZT Systems, a hyperscale server maker. The deal combines AMD's advanced processors, graphics chips, and networking technology with ZT Systems' skills in building large-scale server systems and AI infrastructure. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. With this integration, AMD can deliver end-to-end AI solutions optimized for hyperscale providers and enterprises. Also, the deal allows AMD to reduce the time needed to design and deploy cluster-level AI systems, boosting its position in the rapidly evolving AI market. It must be noted that ZT Systems designs and deploys servers for major cloud providers like Amazon (AMZN) Web Services and Microsoft (MSFT) Azure. This helps AMD strengthen its position in the data center market. The newly acquired ZT Systems will operate under AMD's Data Center Solutions business unit, led by Executive Vice President Forrest Norrod. Importantly, AMD anticipates the deal to be accretive on an adjusted basis by the end of 2025. AMD's AI Push This deal reflects one of the company's efforts to strengthen its presence in the AI space through several initiatives. Among others, AMD has launched cutting-edge products like the 5th Gen EPYC processors and Instinct MI325X accelerators, which can handle high AI workloads efficiently. Also, the company is developing AI-powered PCs with its Ryzen AI PRO processors to boost performance for both businesses and everyday users. Overall, these efforts help bolster AMD's position in the fast-growing AI market. Is AMD a Good Stock to Buy Now? Turning to Wall Street, AMD stock has a Moderate Buy consensus rating based on 24 Buys, 12 Holds, and one Sell assigned in the last three months. At $147.34, the average AMD stock price target implies a 43.41% upside potential. See more AMD analyst ratings. Disclaimer & Disclosure Report an Issue
