Advanced Micro Devices, Inc (NASDAQ:AMD) is strategically preparing to address the growing demand for AI computing by leveraging its extensive product range.
CTO Mark Papermaster emphasized AMD’s robust portfolio of compute engines, strong relationships with customers across diverse markets, and open software capabilities.
He reflected on AMD’s 55-year history, highlighting its shift to a modular IP portfolio unified by a comprehensive AI software stack, which will enable the company to adapt more efficiently to evolving technological needs, Business Standard reports.
Papermaster also noted that AMD plans to make significant announcements at Computex, emphasizing the importance of open ecosystems and deep industry partnerships.
He further explained that AMD’s R&D investment has nearly quadrupled from $1.5 billion in 2019 to $5.9 billion in 2023, aligning with growing computing performance and efficiency demands.
AMD has increased its market presence, especially following the acquisition of Xilinx, which contributed significant IP, talent, and market expansion to adaptive computing markets.
AMD analysts warned against gaming segment weakness offsetting growth in other areas, with revenue expectations now below consensus. They flagged aggressive pricing from Nvidia Corp (NASDAQ:NVDA) could impact AMD.
However, they noted strong demand for AI and significant potential in AMD’s data center GPU growth despite competition from Nvidia. They also emphasized strong demand for MI300 and the server business, which continue to improve despite headwinds.
AMD stock gained over 58% in the last 12 months. Investors can gain exposure to the stock via AOT Growth And Innovation ETF (NASDAQ:AOTG) and AOT Growth And Innovation ETF (NASDAQ:AOTG).
Price Action: AMD shares traded higher by 1.99% at $153.60 premarket on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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This article AMD Positions for AI Leadership with Expanded Portfolio, Quadrupled R&D Investment Ahead of Major Computex Announcements originally appeared on Benzinga.com
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