Instinct graphics processing units (GPUs)

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AMD Soars on OpenAI Deal. Is It Too Late to Buy the Stock?
The Motley Fool· 2025-10-11 17:30
AMD's deal with OpenAI could be transformative.Advanced Micro Devices' (AMD -7.78%) stock soared earlier this week after the company announced a new partnership with OpenAI that could greatly improve its fortunes in the artificial intelligence (AI) chip market. As part of the deal, OpenAI will deploy 6 gigawatts of AMD's Instinct graphics processing units (GPUs) across multiple generations of hardware, beginning with a 1 gigawatt rollout of its MI450 chip in the second half of 2026. Meanwhile, AMD granted O ...
AMD Stock Is Soaring on an OpenAI Deal, But Analysts Still Think It Can Climb 35% From Here
Yahoo Finance· 2025-10-08 18:10
AMD (AMD) stock surged nearly 24% on Monday after the company announced a partnership with OpenAI, which could give the ChatGPT maker a 10% stake in the semiconductor giant. OpenAI will deploy six gigawatts of AMD's Instinct graphics processing units (GPUs) over several years, starting with a 1-gigawatt rollout in late 2026. The agreement positions AMD as a core strategic partner to OpenAI, marking one of the largest GPU deployment deals in the AI industry. As part of the deal, AMD issued OpenAI a warrant ...
AMD & OpenAI strike a deal, Fifth Third to buy Comerica
Youtube· 2025-10-06 15:15
Group 1: AMD and OpenAI Partnership - AMD has secured a significant partnership with OpenAI, which includes OpenAI taking a 10% stake in AMD and committing to purchase 6 gigawatts of AMD's Instinct GPUs over several years [1][5][7] - This collaboration is seen as a major move for AMD to compete more effectively against Nvidia in the AI data center market [8][9] - OpenAI's investment in AMD comes at a time when Nvidia has also invested in OpenAI, indicating a competitive cycle among these tech giants [8][9] Group 2: Market Reactions and Economic Indicators - The announcement of the AMD and OpenAI deal has contributed to a positive market sentiment, with the Dow and S&P 500 expected to open at new all-time highs [3][4] - Bitcoin has reached a new high of over $125,000, while gold is also experiencing record-breaking prices, reflecting a broader trend of rising safe-haven assets amid economic uncertainty [3][20][21] - Analysts are predicting continued growth in the S&P 500, with Goldman Sachs expecting firms to beat earnings estimates as the earnings season approaches [5][17] Group 3: Corporate Developments - Fifth Third Bank Corp is acquiring Coma in an all-stock deal valued at $10.9 billion, which will create the ninth largest bank in the U.S. with $288 billion in assets [2][27] - Verizon has appointed Dan Schulman as its new CEO, replacing Hans Vestberg, as part of a leadership change aimed at revitalizing the company [28][30] Group 4: Global Economic Trends - The resignation of France's new prime minister has led to concerns about political stability in the Eurozone, impacting French stocks negatively [34][36] - Japan is poised to have its first female prime minister, which has resulted in a significant surge in Japanese stocks, indicating potential for increased fiscal stimulus [38][39] - Analysts are optimistic about Japan's market outlook, suggesting a long-term bull market could be emerging [42][56]
AMD: Is It Time to Buy the Stock Before Its AI Growth Explodes?
The Motley Fool· 2025-05-10 11:21
Core Insights - Advanced Micro Devices (AMD) has shown strong revenue growth in its data center segment, with sales increasing by 57% to $3.7 billion, despite a 35% decline in stock performance over the past year [2][6]. Group 1: Data Center Growth - AMD has become the leader in the data center CPU market, with significant growth attributed to its EPYC chips and increased adoption by cloud computing providers [3][4]. - The company is experiencing robust demand for its GPUs in generative AI tasks, with major tech companies utilizing its GPUs for AI model training and inference [4][5]. Group 2: Financial Performance - In Q1, AMD reported overall revenue growth of 36% to $7.44 billion, with adjusted earnings per share (EPS) rising 55% to $0.96, surpassing analyst expectations [8]. - The client and gaming segment revenue increased by 28% to $2.9 billion, driven by high-end Ryzen CPUs, although gaming revenue fell by 30% due to lower semi-custom revenue [9]. Group 3: Future Outlook - Despite facing export restrictions that could result in a $1.5 billion revenue loss for the year, AMD forecasts strong double-digit percentage revenue growth in 2025 and projected Q2 revenue of $7.4 billion, representing 27% growth [6][7]. - The inference market for AI chips is expected to grow significantly, and AMD's established position in this segment could drive future growth [11]. Group 4: Valuation - AMD's stock is currently trading at a forward price-to-earnings ratio of 26.5 times 2025 estimates and about 18 times 2026 estimates, indicating a more attractive valuation compared to the previous year [12].