Advanced Micro Devices (AMD) is benefiting from the growing adoption of its EPYC processors by Alphabet (GOOGL) and Oracle (ORCL) . The fifth-generation EPYC processors are powering the new Google Cloud C4D and H4D virtual machines as well as Oracle Cloud Infrastructure Compute E6 Standard shapes.Through its embedded EPYC portfolio, AMD supports high-performance compute, high-bandwidth network connectivity and security, and high-performance storage requirements for enterprise and cloud infrastructure. AMD r ...

Advanced Micro Devices (AMD) and Broadcom (AVGO) are key providers of semiconductor chips that power artificial intelligence (AI). Chips from these companies support running of Large Language Models that form the backbone of Generative AI (Gen AI). Growing AI deployment bodes well for both AMD and AVGO. The Semiconductor Industry Association (SIA) expects double-digit growth rate in 2025 with semiconductor sales surging 19.1% to $627.6 billion in 2024. However, both AMD and Broadcom shares have suffered fro ...

Core Viewpoint - Advanced Micro Devices (AMD) has expanded its product offerings with the launch of the fifth-generation EPYC family server processors and the AMD Radeon RX 9070 XT and RX 9070 graphics cards, aiming to enhance its competitive position in the market [1][2]. Product Expansion - AMD's new EPYC processors support high-performance compute, high-bandwidth network connectivity, and security, catering to enterprise and cloud infrastructure needs [2]. - The EPYC Embedded 9005 Series processors offer core counts from 8 to 192 and provide up to 1.3X and 1.6X increases in data processing throughput for networking and storage workloads [9]. - The Radeon RX 9070 XT and RX 9070 graphics cards feature 16GB of memory and advanced AI accelerators, making them suitable for gaming and creative applications [11]. Market Position and Competition - AMD has faced stiff competition from NVIDIA in the cloud-data center and AI chip markets, raising concerns about its market share [3]. - Year-to-date, AMD shares have declined by 13.1%, underperforming the Zacks Computer and Technology sector's decline of 8.2% [6]. Financial Performance - In 2024, AMD's Data Center revenues accounted for approximately 50% of annual revenues, increasing by 69% year-over-year to $3.9 billion [7]. - The consensus estimate for AMD's 2025 earnings is $4.59 per share, indicating a year-over-year growth of 38.67%, while revenues are expected to reach $31.87 billion, reflecting a growth of 23.61% [16]. Strategic Partnerships and Acquisitions - AMD has established a strong partner base, including major companies like Cisco, IBM, Amazon, and Microsoft, which is crucial for expanding its market presence [13]. - Recent acquisitions, such as Silo AI and ZT Systems, are aimed at enhancing AMD's AI capabilities and bridging the technological gap with competitors like NVIDIA [15]. Valuation Concerns - AMD stock is currently considered overvalued, with a forward Price/Sales ratio of 5.12X compared to the industry's 3.07X, indicating a stretched valuation [18]. - The stock is trading below its 50-day and 200-day moving averages, suggesting a bearish trend [21].