Latest news with #acceleratedcomputing
Forbes
6 days ago
- Business
- Forbes
AMD Stock To $330?
Could AMD stock (NASDAQ:AMD) reach $330 in the next two years? There's a good chance of this happening. How? Consider this, just about four months ago, at the end of April 2025, AMD stock was trading at around $80 levels and has seen a massive rally to close to $180 per share currently. Looking at the valuations, AMD stock trades at about 55x trailing earnings and just about 45x projected 2025 earnings. Is this pricey? No. Especially if you consider AMD's steadily expanding earnings, growing share of the CPU market, and most importantly, the long-growth runway for the artificial intelligence market. In the scenario below, we use AMD's revenues, profitability, and valuation multiples to demonstrate a potential path to a $ 300-plus stock price in the near future. AMD's GPUs Can Drive Revenue AMD's revenues have risen considerably from $6.7 billion in 2019 to about $26 billion in 2024, an annual growth of over 31%, and the momentum can hold up. Consensus projects a close to 25% growth for 2025. However, there is a real opportunity for AMD to grow its sales at an average annual rate of close to 35% for the next two years, led by growth in accelerated computing space and its new GPUs. Its revenues could move from an estimated $32 billion in FY'25 to around $58.3 billion by FY'27, or an over 80% increase. Several trends could drive this continued growth. Separately, if you are looking for potential gains with reduced volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative—having surpassed the performance of the S&P 500 and produced returns of over 91% since its inception. More capable AI chips from AMD: AMD is likely to see strong tailwinds from the generative AI trend, as graphics processing units have become the de facto chips for running AI-related workloads. To be sure, Nvidia makes the best AI chips in the market and has a hardware and software ecosystem that is well entrenched with big cloud providers. However, there remains a considerable opportunity for AMD. At its AI Day earlier this year, AMD unveiled its latest MI350 lineup, which it says will deliver 4x the AI compute performance of its predecessor. Beyond hardware, AMD is building out its AI software and systems stack. These moves could also strengthen AMD's ROCm software stack, which takes an open-source, standards-based approach, a contrast to Nvidia's proprietary CUDA ecosystem. AMD appears confident about its AI products. Earlier this week, there were reports that the company would bump up pricing on its Instinct MI350 AI GPUs from $15,000 to $25,000 - a 70% hike (related: See how artificial general intelligence can 2x Nvidia stock). Inference Can Drive AI Market Share: As a larger mix of AI workloads will shift to inference - essentially using the built models in real-world applications - where efficiency and cost matter more than brute force computing power, AMD could see gains. Costs are also becoming a concern for end-customers of AI chips, as Nvidia's strong pricing power has pushed its net margins above 50% in recent quarters. This could benefit AMD, as customers look for more affordable alternatives to build out data centers quickly. This trend is already playing out. For example, Oracle chose AMD's accelerated computing chips to power its latest super cluster for high-intensity AI workloads, after testing showed AMD's GPUs delivered low latency and strong performance at a competitive price. Even after the reported price hike, AMD's MI350 would still undercut Nvidia's entry-level Blackwell B200, while offering superior specs (related: AMD Stock's Big AI Opportunity Is Taking Shape). Overall, there is plenty of room for growth. AMD estimates that the market for AI accelerator chips will reach approximately $400 billion in 2027. HSBC projects that AMD could see AI-related sales exceed $15 billion by 2026, compared to over $5 billion in 2024. The large market size and continued momentum should make a 35%+ growth in total revenues over the next two years a real possibility. Higher-End Products Can Drive Margins Combine this robust revenue growth with the fact that AMD's adjusted net margins (net income, or profits after all expenses and taxes, calculated as a percent of revenues) are on an improving trajectory - they grew from levels of about 11% in FY'19 to over 21% in FY'24 as the company sees better economies of scale and a more favorable product mix skewed toward complex data center products. Margins could potentially trend still higher to levels of about 25%, as AMD sees higher GPU sales with higher economies of scale, improving its fixed cost absorption. Now, combining 25% adjusted net margins, with about $58 billion in revenue, would translate into earnings of about $14.5 billion. That's a roughly 2.7x increase from levels seen in 2024. Strong Results Mean A Smaller Contraction In Earnings Multiples Now, if earnings grow 2.7x, the price-to-earnings multiple will shrink by 2.7x to levels of about 21x, assuming the stock price stays the same. But that's exactly what AMD investors are betting will not happen. If earnings expand 2.7x over the next few years, instead of the P/E shrinking from a figure around 55x now to about 21x, a scenario where the PE metric stays at about 40x looks quite likely, as stronger growth and expanding margins give investors more confidence about AMD's future. This would make the growth of AMD stock to levels of close to $330 within the next few years a real possibility. So what about the time horizon for this high-return scenario? While our above example illustrates a roughly two-year time frame, in practice, it won't make much difference whether it takes two years or three, as long as AMD is on this revenue expansion trajectory, with margins holding up, the stock price could respond similarly. While AMD stock may have considerable potential, investing in individual stocks can be risky. As an alternative, the Trefis Reinforced Value (RV) Portfolio has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
Globe and Mail
23-07-2025
- Business
- Globe and Mail
CoreWeave Announces Date of Second Quarter 2025 Financial Results
CoreWeave, Inc. (Nasdaq: CRWV) announced today that it will release second quarter 2025 financial results, after the market closes on Tuesday, August 12, 2025. CoreWeave will also host a conference call to discuss its results at 2:00 pm Pacific Time / 5:00 pm Eastern Time. The live webcast of the earnings conference call can be accessed at the CoreWeave Investor Relations website at A replay of the webcast will be available at the same website. About CoreWeave, Inc. CoreWeave, the AI Hyperscaler™, delivers a cloud platform of cutting-edge software powering the next wave of AI. The company's technology provides enterprises and leading AI labs with cloud solutions for accelerated computing. Since 2017, CoreWeave has operated a growing footprint of data centers across the US and Europe. Learn more at
Yahoo
13-07-2025
- Business
- Yahoo
Nvidia (NVDA) Just Got a Buy Rating From Goldman—Here's Why Analysts Are Bullish
NVIDIA Corporation (NASDAQ:NVDA) is one of the . On July 10, Goldman Sachs analyst James Schneider initiated coverage on the stock with a 'Buy' rating and a price target of $185. Schneider believes that Nvidia is the biggest beneficiary of the ongoing AI infrastructure buildout. The company's broadening customer base is an optimistic signal, along with product leadership and rapid new releases, and an attractive valuation that can drive stock outperformance in the medium term. 'Nvidia is a fabless provider of GPU technology and related software (CUDA), and we see it as the industry standard in accelerated computing. Although stock price action has been choppy due to 'peak concerns' and the growing presence of custom accelerators, we believe that a combination of (1) product leadership and rapid cadence of introductions; (2) broadening of the customer base; (3) early signs of AI monetization; and (4) attractive valuation can drive outperformance versus our coverage.' NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. While we acknowledge the potential of NVDA 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.
Yahoo
13-07-2025
- Business
- Yahoo
Nvidia (NVDA) Just Got a Buy Rating From Goldman—Here's Why Analysts Are Bullish
NVIDIA Corporation (NASDAQ:NVDA) is one of the . On July 10, Goldman Sachs analyst James Schneider initiated coverage on the stock with a 'Buy' rating and a price target of $185. Schneider believes that Nvidia is the biggest beneficiary of the ongoing AI infrastructure buildout. The company's broadening customer base is an optimistic signal, along with product leadership and rapid new releases, and an attractive valuation that can drive stock outperformance in the medium term. 'Nvidia is a fabless provider of GPU technology and related software (CUDA), and we see it as the industry standard in accelerated computing. Although stock price action has been choppy due to 'peak concerns' and the growing presence of custom accelerators, we believe that a combination of (1) product leadership and rapid cadence of introductions; (2) broadening of the customer base; (3) early signs of AI monetization; and (4) attractive valuation can drive outperformance versus our coverage.' NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. While we acknowledge the potential of NVDA 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.
Yahoo
12-07-2025
- Business
- Yahoo
NVIDIA Corporation (NVDA): Its CEO's 'Changed The World,' Says Jim Cramer
We recently published . NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently discussed. NVIDIA Corporation (NASDAQ:NVDA) is once again the world's most valuable company. The firm's shares have gained 41% since May and propelled it to the top of the market valuation pyramid. NVIDIA Corporation (NASDAQ:NVDA) has been helped by the fact that analysts have increasingly grown optimistic about the long-term demand for AI. However, Cramer was careful to note that apart from AI, NVIDIA Corporation (NASDAQ:NVDA) can also benefit from the growth in accelerated computing. He discussed the firm's CEO and accelerated computing in detail: 'Oh there you go. Alright, hey, who is the leader of nicest guy on Earth! Jensen Huang. I mean Jensen Huang comes in peace. I remember when he didn't like Zuckerberg because he thought it was about combat. And then Zuckerberg, pivots! I mean people have to understand that Jensen Huang when you meet Jensen, you think he's just a guy who's just a gamer and has no concept of how wealthy he is. I mean I'm telling you these guys, I know that there's a tenor, especially in New York City, about rich people and how they conduct themselves. This man's made more millionaires than anyone in America. And he just is so grateful that people made money with NVIDIA. And I just feel like I gotta say this stuff. He is not the beneficiary. It's everybody he's brought along. A close-up of a colorful high-end graphics card being plugged in to a gaming computer. 'It does feel like there's a let's get it there momentum. I don't like that I like it based on new accelerated computing or something new involving Blackwell or Rubin but it's just on momentum. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
