Latest news with #MI400
Yahoo
22-05-2025
- Business
- Yahoo
The Hidden Headwinds for AMD: Why Truist Just Lowered Its Price Target
Truist recently lowered the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $111 from $130 and kept a Hold rating on the shares. AMD operates as a semiconductor manufacturer. In an investor note, the analyst noted that the company's Q1 result was good overall, but the outlook included several complicating factors like a reduction in Q2-Q3 Datacenter Accelerator revenue from exiting the China market and an inventory write-down in Q2. Truist added that it lacked conviction in Advanced Micro Devices, Inc. (NASDAQ:AMD)'s ability to ramp MI350, MI400, and beyond, in a way that would be truly competitive. A close up of a complex looking PCB board with several intergrated semiconductor parts. Latest reports indicate that the semi firm has inked a multi-year, $10 billion investment partnership with HUMAIN, a new artificial intelligence enterprise launched in Saudi Arabia. The companies plan to deploy 500 megawatts of AI compute capacity in Saudi Arabia over the next five years. HUMAIN has been busy courting major US tech companies. Earlier, it had announced an investment plan of more than $5 billion with Amazon Web Services. While we acknowledge the potential of AMD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None.
Yahoo
20-05-2025
- Business
- Yahoo
AMD Sells ZT Fab Unit, Bolsters AI Talent to Challenge Nvidia
AMD (NASDAQ:AMD) offloads ZT Systems' manufacturing arm for $3 billion while snapping up its 1,200-strong engineering team to sharpen its edge against Nvidia (NASDAQ:NVDA) in the data-center GPU race. Warning! GuruFocus has detected 4 Warning Signs with AMD. Citi Research analysts, led by Christopher Danely, note that last August's $4.6 billion ZT deal has been split: Sanmina will acquire the factory business for $2.55 billion in cash and stock plus $450 million in earn-outs, while AMD retains the engineers for roughly $1.6 billionabout $1.33 million apieceto accelerate hyperscaler deployments and bolster system-level expertise. Danely argues that additional system experience and faster deployment times should help AMD close the gap on Nvidia's market share. Under the agreement, Sanmina becomes AMD's preferred manufacturing partner for cloud-rack and cluster-scale AI solutions, reflecting a strategic pivot from in-house production to a fab-lite model. The transaction, expected to close near year-end 2025, underscores AMD's focus on high-margin chip design over capital-intensive fabs. Citi kept its Neutral rating and $100 price target on AMD, highlighting the balance between near-term dilution from the $1.6 billion engineering buyout and long-term gains from faster product rollouts. AMD, which derives roughly 30% of sales from PCs, faces stiff competition not only from Nvidia in AI GPUs but also from Intel (NASDAQ:INTC) in data-center CPUs. By beefing up its in-house design team and offloading manufacturing risk, AMD aims to streamline R&D investment and speed time to market for MI300 and future MI400 data-center accelerators. Why It Matters: Retaining ZT's engineering talent while outsourcing production could deliver faster hyperscaler deployments and help AMD narrow the performance and deployment gap with Nvidia's entrenched data-center GPU ecosystem. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
AMD Withstands China Curbs, Eyes AI Comeback
AMD (NASDAQ:AMD) delivers solid results and guidance while warning that China export curbs will shave roughly $1.5 billion off its fiscal 2025 revenue. In its latest quarterly update, AMD disclosed that its guidance assumes a $700 million hit from MI308 export restrictions to China, with total 2025 losses of about $1.5 billion. Shares rallied 1.9% in premarket tradingoutperforming rivals Nvidia (NASDAQ:NVDA) and Intel (INTC)as management reiterated confidence in client and server CPU momentum despite the headwinds. Morgan Stanley's Joseph Moore praised AMD's very good numbers, noting that free cash flow and client-unit pull-ins remain strong even as AI hasn't yet driven earnings, though it has lifted the valuation multiple. Bank of America's Vivek Arya expects Q1 revenue of $7.15 billion$7.20 billiona $50 million$100 million beatwhile warning that pro-forma gross margins could dip to 42%43% in Q2 before rebounding to historical 54%55% ranges in 2H25 as China impacts ease. Jefferies' Blayne Curtis echoes that AI GPU sales will be the primary metric, forecasting 2026 AI GPU revenue of $6 billion versus the Street's $7.4 billion, given continued NVDA and custom-chip competition. Meanwhile, Evercore ISI's Mark Lipacis reiterated an Outperform rating after AMD said its Instinct data-center GPU business grew over 60% quarter-over-quarter to $1.6 billion on the back of hyperscaler deployments and ROCm software gains. Analysts agree that AMD's client CPU strengthfueled by desktop share gains and tariff-related pull-insremains a bright spot, but concern lingers over AI competitiveness until the MI400 series and strategic ZT acquisition synergies materialize next year. Wells Fargo's Aaron Rakers maintained an Overweight rating, noting that the MI308X ban poses a clean catalyst risk into mid- and late-2025, and that investors will need clear visibility on AI GPU traction to regain confidence. Why it matters: AMD's ability to offset China-related revenue losses and deliver a compelling MI400 launch will determine if it can translate robust CPU performance into sustainable AI growthand justify its premium valuation. Investors will now focus on AMD's next quarterly reportexpected in Julyand track the MI400 roadmap and AI-driven revenue updates as the year unfolds. This article first appeared on GuruFocus.
Yahoo
23-04-2025
- Business
- Yahoo
2 Artificial Intelligence (AI) Stocks That Could Soar in the Second Half of 2025
The tariff-driven stock market sell-off has put the indexes into a correction phase, hitting artificial intelligence (AI) stocks hard. Many of these stocks lost one-third or more of their value, and a few sell for less than half of their recent highs. However, the severity of the sell-off could help inspire a rebound in the second half of 2025. Advanced Micro Devices (NASDAQ: AMD) and The Trade Desk (NASDAQ: TTD) are two stocks that are well positioned to experience such a recovery. 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 lost more than 60% of its value over the last 13 months. Initially, playing second fiddle to Nvidia in the AI accelerator market and the massive revenue declines in AMD's gaming and embedded segments hit this stock hard. More recently, tariff fears and the specter of sales restrictions to Chinese customers inspired further selling. Nonetheless, investors have reason to believe in a rebound in the second half of the year. For one, AMD continues to make advancements with its AI accelerators, with a planned release of the MI350 later this year and the MI400 in 2026. Also, on June 12, CEO Lisa Su plans to speak at the company's Advancing AI 2025 livestream event. The company said the event would exhibit AMD's vision for AI, which could revive interest in the stock if investors buy into AMD's plan for success. Moreover, the outlook has improved for its lagging sectors. The 33% drop in yearly revenue for the embedded segment in 2024 showed signs of stabilizing in the fourth quarter, and the 58% revenue decline in the gaming segment for the same period is unlikely to repeat. Hence, even though revenue grew by 14% in 2024, analysts forecast a 22% rate for this year, and that increasing growth rate could revive optimism. The company's rising revenue growth should also boost profitability and bring about a low valuation. Although its trailing P/E ratio is 88, a forward P/E ratio of 19 arguably makes AMD a bargain. That factor alone could drive investors into AMD stock while it sells at such an attractive forward earnings multiple. AMD is not the only lower-priced stock; perhaps no AI stock has seen a more significant reversal of fortune this year than The Trade Desk. Investors had flocked to this stock amid the rising popularity of its buy-side digital advertising platform. The company allows advertisers and ad agencies to manage ad campaigns, leveraging data capabilities to deliver the highest returns on ad spending. Also, since it is a neutral player, it does not have a bias toward a specific advertising platform, giving it a competitive advantage. Consequently, The Trade Desk stock has long prospered, and the market had arguably priced it for perfection until recently. However, stock prices fell off a cliff after the company missed its own revenue estimate, and the declines continued as a generalized sell-off weighed on the overall market. Since peaking in December, the stock has lost around 65% of its value. Nonetheless, the P/E ratio, which briefly exceeded 225 in December, has now fallen to 64, its lowest level since 2018. Its forward P/E ratio of 28 also could make The Trade Desk a value stock at current levels. Additionally, revenue rose 26% during 2024 to more than $2.4 billion, and even in Q4, when it fell short of its revenue estimate, the figure still increased by 22% yearly. This shows the company continues to grow at a significant pace. Also, the company forecasts at least $575 million in revenue for Q1, which would amount to a 17% growth rate if that prediction holds. Though that would mean a sequential slowdown, the recent stock price decline likely prices in the revenue growth deceleration. Given that conservative revenue forecast, the company is less likely to miss its own revenue estimate again. When also considering its lower forward P/E ratio, investors may decide to add shares while The Trade Desk seems less expensive. 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 $532,771!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $593,970!* Now, it's worth noting Stock Advisor's total average return is 781% — a market-crushing outperformance compared to 149% 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 April 21, 2025 Will Healy has positions in Advanced Micro Devices and The Trade Desk. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and The Trade Desk. The Motley Fool has a disclosure policy. 2 Artificial Intelligence (AI) Stocks That Could Soar in the Second Half of 2025 was originally published by The Motley Fool
Yahoo
19-04-2025
- Business
- Yahoo
Prediction AMD Will Soar Over the Next 5 Years. Here's 1 Reason Why.
In the current environment, it seems antithetical to say anything positive about Advanced Micro Devices (NASDAQ: AMD). The semiconductor stock has lost more than 60% of its value over the last 13 months as industry struggles and tariff-related worries have weighed on the company. However, the investment case for AMD stock looks completely different, and given its advancements in one part of the chip industry, the stock could be in the perfect position to prosper over the next five years. 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 » Despite tariff-related worries and Nvidia's market lead, it could be AMD's time to succeed with artificial intelligence (AI). Indeed, AMD and its peers face uncertainty as the U.S. government works to cut off China's GPU supply. The company revealed in an SEC filing that it might face charges of up to $800 million related to that policy change. Nonetheless, investors should remember that the data center segment, which includes AI accelerators, generated $12.6 billion in revenue. That was a 94% yearly increase, and it is nearly 16 times the estimated charges over the tariff hit. Moreover, tech giants such as Meta Platforms and Microsoft chose AMD's MI300 accelerator over Nvidia's chips, indicating it has developed a competitive niche. It also plans to release the MI350 this year and the MI400 in 2026 to advance its capabilities, which should close some of the competitive gap and position it to further capitalize on AI. Additionally, all of these developments come at a time when AMD's forward P/E ratio is just 19. Analysts also believe AMD's overall revenue growth rate will rise from 14% last year to 23% in 2025. A strong performance from the data center segment and signs the down cycle may be ending in its gaming and embedded segments should put AMD in a more favorable light. Ultimately, the selling in AMD stock appears overdone. The stock isn't cheap today, but its best days still lie ahead. With AMD competing more aggressively in the AI accelerator market, the stock appears to have what it takes to rise to all-time highs and beyond in the next few years. 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 $524,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $622,041!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 153% 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 April 14, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Will Healy has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction AMD Will Soar Over the Next 5 Years. Here's 1 Reason Why. was originally published by The Motley Fool Sign in to access your portfolio
