Tech Giants See Surge in AI Demand, Driving Continued Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Record Sales for AMD: AMD reported record sales of its EPYC CPUs in Q3, driven by strong demand from major hyperscalers like Google, Microsoft, and Alibaba, showcasing its competitive edge in the rapidly growing AI market.
- New Products Generate Interest: The strong interest in AMD's next-generation data center chips and Helios AI computing system, particularly validated by deals with OpenAI and Oracle, highlights the market potential of its technology.
- Rapid Growth in Google Cloud: Revenue from AI-driven products in Google Cloud surged 200% year-over-year, contributing to a 34% increase in segment revenue, now exceeding an annual run rate of $60 billion, indicating rapid expansion in the $390 billion cloud market.
- Significant ROI from Infrastructure Investment: Google has invested $77 billion in infrastructure over the past 12 months, and despite high expenditures, its cloud operating profit jumped 85% year-over-year in Q3, suggesting substantial future returns.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 284.10 USD with a low forecast of 200.00 USD and a high forecast of 377.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 251.310
Low
200.00
Averages
284.10
High
377.00
Current: 251.310
Low
200.00
Averages
284.10
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
