AMD's Stock Soars 6% After Receiving High Praise for Ai Advancements

Advanced Micro Devices Inc. (AMD) experienced a significant boost in its share price on Thursday, following its artificial-intelligence event, which initially did not yield a surge in stock value. Analysts, upon reflecting on the chip maker's presentation, expressed positive sentiments and noted the launch of AMD's MI300X AI/graphics-processing-unit accelerator as a pivotal moment in the industry.

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Hans Mosesmann, an analyst at Rosenblatt Securities, deemed the event as one of the most impressive product launches in the last decade or even ever. He emphasized that the launch went beyond technical details, positioning itself as an industry movement centered around the preference for 'open' sourced technologies. Mosesmann highlighted the importance of addressing the rapidly evolving landscape of artificial intelligence (AI) with such open technologies, especially considering the life-changing impact of AI.

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Mosesmann was particularly impressed by AMD's claim of superiority in AI inferencing, and he commended the company's software platform, ROCm, which he believes is catching up to Nvidia Corp.'s CUDA. While acknowledging that Nvidia will continue to dominate the AI sector for years to come, Mosesmann argued that AMD made a compelling case for becoming a significant AI innovator over the long term. He maintained an outperform rating and set a $200 target price for AMD stock.

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In response to the positive developments, AMD shares surged by 6% in Thursday morning trading. Analyst Tristan Gerra from Baird also shared his positive assessment, citing rapidly unfolding engagements with hyperscalers, competitive AI architecture specs, and an accelerated new product roadmap. Gerra anticipates share gains and sustained growth in AI-related revenue for AMD beyond 2024. He sees potential high-volume deployments due to significant software milestones achieved by AMD and rates the stock as outperform with a $125 target price.

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TD Cowen's Matthew Ramsay echoed the sentiment, stating that AMD's event reinforced his belief in the company's ability to significantly participate in the large total addressable market for AI accelerators. Ramsay noted that AMD's customer announcements, including Microsoft Corp., Meta Platforms Inc., and Oracle Corp., were strong, although not surprising. He expressed encouragement that AMD is establishing itself as a key player in providing adaptive computing solutions for both training and inference in large generative-AI infrastructure builds. Ramsay maintained an outperform rating with a $130 target price on AMD shares.

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In summary, AMD's artificial-intelligence event, initially lacking a stock price bump, has garnered positive reviews from analysts who believe the company is well-positioned for growth in the AI sector, with potential for continued innovation and market leadership.