Advanced Micro Devices shares rose Wednesday after the chipmaker unveiled its latest semiconductor and data center products optimized for artificial intelligence. AMD stock has gotten a lift lately from investor interest in AI stocks.
With the announcements, AMD is hoping to steal some fire from market leader Nvidia in the AI space.
At a company event Tuesday, AMD showed off its latest Epyc server processors and a new AI accelerator chip series. AMD introduced fourth-generation Epyc central processing units and previewed its Instinct MI300 Series accelerator family.
Chief Executive Lisa Su described the high-end Instinct MI300X accelerator chip as "the world's most advanced accelerator for generative AI." The product is a graphics processing unit optimized for large language model workloads.
AMD is now sampling the first of its MI300 products to customers, the company said in a news release. It plans to launch the products in the fourth quarter.
Artificial Intelligence News And AI Stocks To Watch
AMD Stock In Profit-Taking Zone?
AMD's AI moves are positioning the chipmaker to take advantage of what will be a $150 billion total addressable market opportunity in the data center market by 2027, Su said. The market will be about $30 billion in 2023.
On the stock market today, AMD stock rose 2.3% to close at 127.33. On May 16, AMD stock broke out of a cup base at a buy point of 102.43, according to IBD MarketSmith charts.
While AMD stock is technically in the 20%-to-25% profit-taking zone, it is subject to the 8-week-hold rule because it appreciated 20% or more from a proper buy point within three weeks. That's based on IBD trading guidelines.
A Dozen Price-Target Hikes
At least 12 Wall Street firms raised their price targets on AMD stock after the company's presentation.
Barclays analyst Blayne Curtis reiterated his overweight, or buy, rating on AMD stock after the event. He also raised his price target to 145 from 90.
"The event turned out largely as expected with investors focused on AI and some positive product announcements, but no large AI customer announcements or financial guidance to really hang your hat on," he said in a note to clients.
Curtis added, "Still a ton of work ahead for AMD in AI but the overall message is that the AI market is very large and AMD has an opportunity to take some share vs. Nvidia."
On Wednesday, Reuters reported that Amazon Web Services is considering using AMD's new AI accelerator chips.
AMD stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
