J P M O R G A N North America Equity Research 06 August 2025 Advanced Micro Devices Solid 2Q Results And 3Q Outlook; Next-Gen AI GPU (MI350 Series) Ramping With Strong Shipments In 2H AMD reported strong Jun-Qtr revenue results (4% better than guidance) with margins/EPS in-line with expectations. Better revenues were driven by stronger client/gaming revenues and slightly better datacenter revenues (AI GPU was down Q/Q as expected due to China restrictions, and EPYC server CPU revenues grew Q/Q to record lev ...

Key Takeaways Intel shares rose 7.9% in a year, lagging the industry and AMD but topping Qualcomm.Xeon 6 processors see adoption in AI systems, including NVIDIAs DGX B300.Strategic divestitures aim to streamline operations and strengthen the balance sheet.Intel Corporation (INTC) has increased 7.9% over the past year compared with the industry’s growth of 48%. It has underperformed compared to the Zacks Computer & Technology sector and the S&P 500.Image Source: Zacks Investment ResearchThe company has also ...

Core Insights - The future of AI is characterized by the emergence of Physical AI, which integrates digital AI with machines and devices capable of real-time interaction and learning [1] - Technologies such as Automated Vehicles (AVs), warehouses, and business systems are currently in use and represent significant investment opportunities [1] Company Summaries NVIDIA - NVIDIA is positioned as a leader in AI due to its GPU technology, which has been pivotal in unlocking the data center industry and AI applications [2][3] - The company is developing infrastructure for Physical AI across various sectors, including automotive, robotics, and smart cities [3] - NVIDIA's stock is considered undervalued with a potential increase of 200% over the next decade based on long-term earnings forecasts [4] Advanced Micro Devices (AMD) - AMD is set to regain market share in the GPU and data center markets, focusing on bringing AI to the edge with its Ryzen line optimized for AI experiences [6][7] - The stock is viewed as deeply undervalued, with potential for high triple-digit gains within the next five to ten years [8] Tesla - Tesla is focusing on the future of AV with the upcoming release of its fully autonomous Cybercab, expected in 2026, alongside advancements in robotics [10][11] - Despite facing challenges, Tesla continues to generate profits and invest in future technologies, indicating a potential for a 100% increase in stock value based on long-term outlooks [12] Ambarella - Ambarella has shifted focus from image processing to computer vision and edge computing, positioning itself as a key player in Physical AI [14][15] - The company is expected to sustain high double-digit growth for at least the next ten years, with stock potential to rise by 100% based on forecasts [16] Symbotic - Symbotic automates supply chains for major companies like Walmart and Amazon, enhancing efficiency and reducing emissions [18][19] - The company has a significant backlog exceeding $23 billion, indicating strong future growth potential [19]

AMD and Microsoft are advancing a bold, shared vision for the future of gaming one that enables seamless gameplay across any screen. Placing gamers at the center of the experience anywhere. We're so excited to be deepening our relationship with Microsoft and build on the over two decades of partnership, innovation and trust.From the earliest days of the Xbox 360, to the most advanced consoles, such as the Xbox Series X and S, and the recently announced ROG Xbox Ally handhelds. Moving forward, AMD will go be ...

Core Insights - The article discusses the increasing demand for smaller chips due to the need for more transistors and higher processing power, particularly in the context of large-scale language models [1][2] - It highlights the challenges in semiconductor manufacturing, particularly the limitations in increasing transistor density and the difficulties in wiring connections between transistors [4][6] - The article compares different chip architectures, specifically the WSE-3 and Nvidia H100, emphasizing the trade-offs in performance, memory capacity, and cost-effectiveness [9][10] Group 1: Chip Architecture and Performance - The trend towards using smaller chips is driven by the desire to increase the number of transistors within a limited area, with current limits around 800 square millimeters for manufacturing [2][3] - The WSE-3 chip, while having a larger size and more on-chip memory, faces challenges in storing all necessary weights for large language models, leading to a complex external memory configuration [10][8] - The performance comparison shows that WSE-3 has a memory capacity 880 times greater than H100, but only achieves 20 times the performance, indicating a complex balance between cost and value [10][8] Group 2: Cost and Value Considerations - The article discusses the cost implications of using chiplets versus monolithic designs, noting that chiplets can potentially reduce manufacturing costs while allowing for greater flexibility in product design [15][16] - It emphasizes the importance of evaluating the value derived from using chiplets, as the benefits must outweigh the additional costs associated with their implementation [24][26] - The article also mentions that the value of chiplets can vary significantly between companies, depending on their specific manufacturing processes and technologies [26]