Latest news with #InstinctMI400
Yahoo
5 days ago
- Business
- Yahoo
AMD's Earnings Miss Doesn't Matter: This Is Much More Important
Key Points AMD's earnings fell short of expectations in its most recent quarter, but not by much. Its Instinct AI accelerator chips are being adopted by a growing number of important players in the tech space. 10 stocks we like better than Advanced Micro Devices › The market can oftentimes focus too much on companies' short-term results. Whether a company meets, beats, or misses expectations for a given quarter, the results can be a notable spike or slide in its share price. The problem is that paying too much attention to such fluctuations can drive both investors and management toward short-term thinking. If you're an investor who can keep your focus on the long term, though, you don't have to worry as much about how a company in your portfolio does during any single quarter, and can be guided instead by the bigger picture. Based on its long-term prospects, one stock I see as particularly intriguing now is Advanced Micro Devices (NASDAQ: AMD), also known as just AMD. It recently reported earnings numbers that didn't beat the analysts' consensus across all key metrics -- its adjusted per-share profit missed expectations by one cent, which led to a (brief) decline in its share price. While a large-scale sell-off isn't underway, the stock could still be a terrific buy right now. And there was one particular statistic in that report that points to the sheer potential that AMD possesses in the long run -- a stat that some investors who were focusing on the top and bottom lines may have overlooked. 7 of the top 10 companies focused on AI and building models are using AMD's new chips The big question for AMD has been whether its newest AI accelerators will be able to compete with (and take some market share from) those of its massive rival, Nvidia (NASDAQ: NVDA). If they can, then AMD, which is a fraction of the size of Nvidia, would surely be a no-brainer buy. AMD's new Instinct MI400 chips will be available next year, and previously, OpenAI CEO Sam Altman said his company would use them and was enthusiastic about what they could do. It appears OpenAI is far from the only tech leader interested in AMD's chips. On the second-quarter earnings call, AMD CEO Lisa Su said that "seven of the top 10 model builders and AI companies use Instinct." She was referring to the company's current chip, the MI350. The more advanced one coming to market next year may be even more popular, as AMD looks to narrow the gap between itself and Nvidia. This is an impressive stat because it may indicate that companies are seeing AMD's chips as potential alternatives to Nvidia's. AMD may have been slower out of the gate when the AI revolution was first heating up, but now, as it's ramping up its AI chip development, it could take some meaningful market share away from Nvidia. The proof, as it usually is, will be in the numbers. AMD's growth rate has been moving in the right direction Another encouraging sign for AMD investors is that the company's sales growth has been firmly above 20% for multiple quarters. The trend has been a positive one over the past year. If the company can sustain this type of growth rate, it will inevitably capture the attention of more growth investors along the way. The stock is a strong buy for the long term Shares of AMD have rallied by more than 40% this year, and they may seem expensive, trading at over 100 times trailing earnings. But with the company arguably on the cusp of much more growth, especially as its new chips gain market share, there could be considerably greater upside ahead for the business and the stock. Its forward earnings multiple (which is based on analysts' consensus expectations) is 44. While that's still a bit high, it does reflect the significant growth expected from the business in the near future. For long-term investors, now is as good a time as any to load up on shares of AMD. The business looks to be on the right track, and as its new chips reach more customers, it could be a hot stock to own for years to come. 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 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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% 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 August 11, 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. AMD's Earnings Miss Doesn't Matter: This Is Much More Important was originally published by The Motley Fool
Yahoo
25-06-2025
- Business
- Yahoo
AMD's New AI Chips Just Got a Huge Vote of Confidence From Sam Altman
AMD recently announced its latest AI chips -- the MI400 series. OpenAI CEO Sam Altman is excited about their potential, referring to them as "amazing." AMD's growth rate has been accelerating in recent quarters and much more growth could still be on the way. 10 stocks we like better than Advanced Micro Devices › You can see it from the stock price: Not a lot of people are taking Advanced Micro Devices (NASDAQ: AMD) seriously right now as a competitor to its much larger rival, Nvidia. Even though many stocks involved in artificial intelligence (AI) have been hot buys, Advanced Micro Devices, also known as AMD, has been lagging behind. Over the past 12 months, shares of AMD are down 20%, while Nvidia's have risen by around 14% (as of June 23). And if you stretch out the time frame even further, the difference becomes wider. AMD was a bit late in launching AI accelerators, but it may finally be closing the hardware performance gap and possibly even catching up to Nvidia. It recently announced its latest AI chips, and one person who is excited about them is none other than OpenAI CEO Sam Altman. AMD CEO Lisa Su unveiled the Instinct MI400 line of chips a few weeks ago. They'll start shipping to customers next year. The chips can be tied together in a rack solution called "Helios," which Su says "functions like a single, massive compute engine." OpenAI, the company behind ChatGPT, will use the new chips, and Altman is excited about their potential. "It's gonna be an amazing thing." The hope at AMD is that these new chips will take some market share from Nvidia, which has been far and away the leading AI chipmaker in the market thus far. With the MI400s earning a favorable endorsement from Altman, and considering AMD's plans to price them aggressively, faster growth could be ahead for the chipmaker. In recent quarters, AMD's results have been looking better and its growth rate has started to accelerate again. If its growth rate can remain strong, that could attract the types of AI investors who are specifically seeking out riskier stocks with lots of upside potential. AMD's valuation of $210 billion is just a fraction of Nvidia's $3.5 billion market cap. But while Nvidia has been a beast in the AI sphere, investors today may be wondering just how much higher it can go given that it's already among the three most valuable companies in the world. This is where AMD may be a more compelling option. However, for AMD to win over investors, it will need to not only grow its sales but its bottom line as well; currently, the stock trades at more than 90 times its trailing earnings, and even its forward earnings multiple (based on analysts' consensus estimates) is 34, which is still a bit high. The S&P 500's forward price-to-earnings ratio is 23. Setting prices for its AI chips at aggressively low levels could help them win market share, but it may also hurt AMD's margins, which is why it will be imperative for investors to pay close attention to AMD's gross margins to see if they are declining as it rolls out its newest chips. Shares of AMD have been rallying over the past few months, and the business has a lot of potential to rise in value over the years. By working closely with Altman and the OpenAI team, and gaining feedback on its chips, AMD can ensure that its products meet the needs of key customers and hyperscalers. AMD looks like a good stock to buy right now as its growth rate has been improving, and the best may still be to come as it starts rolling out its Instinct MI400 chips. Although its margins may take a hit in the near term, proving that its chips can be formidable alternatives to Nvidia's chips will arguably be much more important to AMD in the long run. 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 $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% 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 23, 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. AMD's New AI Chips Just Got a Huge Vote of Confidence From Sam Altman was originally published by The Motley Fool Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
16-06-2025
- Business
- Yahoo
Advanced Micro Devices (AMD) Gets $130 Price Target as BofA Calls It the 'Next-Best AI Vendor'
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the . On June 13, BofA declared AMD as the 'next-best AI vendor' after its AI event in San Jose, maintaining a 'Buy' rating and a $130 price target on the shares. The company unveiled new details about its next-generation AI chips, the Instinct MI400 series, set to ship next year. OpenAI's Sam Altman made a surprising appearance at the event as well, with AMD noting how it has been offering it feedback on its MI400 roadmap. Analyst Vivek Arya noted how the company provided an update to its end-to-end infrastructure platform, stating that investors' expectations might 'have been high,' but the company continues to execute in its AI roadmap, customer, and ecosystem proliferation. A close-up of a digital circuit board with chips illuminated by LED lights. The company has also doubled down on its partnerships with Meta, Oracle, Microsoft, xAI, OpenAI, and Saudi Arab's AI startup Humain. The analyst also noted how no new hyperscaler customer was officially announced, and believes there may be 'engagement' with Amazon's AWS, given that it was a key sponsor for the event. Moreover, he added that AWS prefers announcing its new instances and engagements at its own events. 'We attended AMD's Advancing AI Event in San Jose where AMD provided an update to its end-to-end AI infrastructure platform. Similar to last AI event in Oct-2024, investor expectations might have been high, but we highlight its continued execution in AI roadmap, customer/ecosystem proliferation, and software maturity.' Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications. While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. 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
CNBC
16-06-2025
- Business
- CNBC
AMD shares rise 10% after analysts say they expect a 'snapback' for chipmaker
Shares of Advanced Micro Devices rose nearly 10% on Monday after analysts at Piper Sandler lifted their price target on the stock on optimism about the chipmaker's latest product announcement. The analysts said they see a snapback for AMD's graphics-processing units (GPUs) in the fourth quarter. That's when they expect the chipmaker to be through the bulk of the $800 million in charges that AMD said it would incur as a result of a new U.S. license requirement that applies to exports of semiconductors to China and other countries. Last week, AMD revealed its next-generation AI chips, the Instinct MI400 series. Notably, the company unveiled a full-server rack called Helios that enables thousands of the chips to be tied together. That chip system is expected to be important for artificial intelligence customers like cloud companies and developers of large language models. AMD CEO Lisa Su showed the products on stage at an event in San Jose, California, alongside OpenAI CEO Sam Altman, who said they sounded "totally crazy." "Overall, we are enthused with the product launches at the AMD event this week, specifically the Helios rack, which we think is pivotal for AMD Instinct growth," the analysts wrote in their note. Piper Sandler raised its price target for AMD's share price from $125 to $140. The stock jumped past $127 on Monday and is at its highest since Jan. 6, before President Donald Trump announced sweeping new tariffs or AMD warned of the chip control charges.
CNBC
12-06-2025
- Business
- CNBC
AMD reveals next-generation AI chips with OpenAI CEO Sam Altman
Advanced Micro Devices on Thursday unveiled new details about its next-generation AI chips, the Instinct MI400 series, that will ship next year. The MI400 chips will be able to be assembled into a full server rack called Helios, AMD said, which will enable thousands of the chips to be tied together in a way that they can be used as one "rack-scale" system. "For the first time, we architected every part of the rack as a unified system," AMD CEO Lisa Su said at a launch event in San Jose, California, on Thursday. OpenAI CEO Sam Altman appeared on stage on with Su and said his company would use the AMD chips. "When you first started telling me about the specs, I was like, there's no way, that just sounds totally crazy," Altman said. "It's gonna be an amazing thing." AMD's rack-scale setup will make the chips look to a user like one system, which is important for most artificial intelligence customers like cloud providers and companies that develop large language models. Those customers want "hyperscale" clusters of AI computers that can span entire data centers and use massive amounts of power. "Think of Helios as really a rack that functions like a single, massive compute engine," said Su, comparing it against Nvidia's Vera Rubin racks, which are expected to be released next year. AMD's rack-scale technology also enables its latest chips to compete with Nvidia's Blackwell chips, which already come in configurations with 72 graphics-processing units stitched together. Nvidia is AMD's primary and only rival in big data center GPUs for developing and deploying AI applications. OpenAI — a notable Nvidia customer — has been giving AMD feedback on its MI400 roadmap, the chip company said. With the MI400 chips and this year's MI355X chips, AMD is planning to compete against rival Nvidia on price, with a company executive telling reporters on Wednesday that the chips will cost less to operate thanks to lower power consumption, and that AMD is undercutting Nvidia with "aggressive" prices. So far, Nvidia has dominated the market for data center GPUs, partially because it was the first company to develop the kind of software needed for AI developers to take advantage of chips originally designed to display graphics for 3D games. Over the past decade, before the AI boom, AMD focused on competing against Intel in server CPUs. Su said that AMD's MI355X can outperform Nvidia's Blackwell chips, despite Nvidia using its "proprietary" CUDA software. "It says that we have really strong hardware, which we always knew, but it also shows that the open software frameworks have made tremendous progress," Su said. AMD shares are flat so far in 2025, signaling that Wall Street doesn't yet see it as a major threat to Nvidia's dominance. Andrew Dieckmann, AMD's general manger for data center GPUs, said Wednesday that AMD's AI chips would cost less to operate and less to acquire. "Across the board, there is a meaningful cost of acquisition delta that we then layer on our performance competitive advantage on top of, so significant double-digit percentage savings," Dieckmann said. Over the next few years, big cloud companies and countries alike are poised to spend hundreds of billions of dollars to build new data center clusters around GPUs in order to accelerate the development of cutting-edge AI models. That includes $300 billion this year alone in planned capital expenditures from megacap technology companies. AMD is expecting the total market for AI chips to exceed $500 billion by 2028, although it hasn't said how much of that market it can claim — Nvidia has over 90% of the market currently, according to analyst estimates. Both companies have committed to releasing new AI chips on an annual basis, as opposed to a biannual basis, emphasizing how fierce competition has become and how important bleeding-edge AI chip technology is for companies like Microsoft, Oracle and Amazon. AMD has bought or invested in 25 AI companies in the past year, Su said, including the purchase of ZT Systems earlier this year, a server maker that developed the technology AMD needed to build its rack-sized systems. "These AI systems are getting super complicated, and full-stack solutions are really critical," Su said. Currently, the most advanced AMD AI chip being installed from cloud providers is its Instinct MI355X, which the company said started shipping in production last month. AMD said that it would be available for rent from cloud providers starting in the third quarter. Companies building large data center clusters for AI want alternatives to Nvidia, not only to keep costs down and provide flexibility, but also to fill a growing need for "inference," or the computing power needed for actually deploying a chatbot or generative AI application, which can use much more processing power than traditional server applications. "What has really changed is the demand for inference has grown significantly," Su said. AMD officials said Thursday that they believe their new chips are superior for inference to Nvidia's. That's because AMD's chips are equipped with more high-speed memory, which allows bigger AI models to run on a single GPU. The MI355X has seven times the amount of computing power as its predecessor, AMD said. Those chips will be able to compete with Nvidia's B100 and B200 chips, which have been shipping since late last year. AMD said that its Instinct chips have been adopted by seven of the 10 largest AI customers, including OpenAI, Tesla, xAI, and Cohere. Oracle plans to offer clusters with over 131,000 MI355X chips to its customers, AMD said. Officials from Meta said Thursday that they were using clusters of AMD's CPUs and GPUs to run inference for its Llama model, and that it plans to buy AMD's next-generation servers. A Microsoft representative said that it uses AMD chips to serve its Copilot AI features. AMD declined to say how much its chips cost — it doesn't sell chips by themselves, and end-users usually buy them through a hardware company like Dell or Super Micro Computer — but the company is planning for the MI400 chips to compete on price. The Santa Clara company is pairing its GPUs alongside its CPUs and networking chips from its 2022 acquisition of Pensando to build its Helios racks. That means greater adoption of its AI chips should also benefit the rest of AMD's business. It's also using an open-source networking technology to closely integrate its rack systems, called UALink, versus Nvidia's proprietary NVLink. AMD claims its MI355X can deliver 40% more tokens — a measure of AI output — per dollar than Nvidia's chips because its chips use less power than its rival's. Data center GPUs can cost tens of thousands of dollars per chip, and cloud companies usually buy them in large quantities. AMD's AI chip business is still much smaller than Nvidia's. It said it had $5 billion in AI sales in its fiscal 2024, but JP Morgan analysts are expecting 60% growth in the category this year.
