Advanced Micro Devices (AMD) shares jumped 12.5% to an intraday high of $504.80 on November 9. This increase followed the announcement of a partnership with Google Cloud. The collaboration will use AMD's fifth-generation EPYC server processors to improve Google Cloud's AI infrastructure. The goal is to help businesses deploy sensitive AI workloads while ensuring data protection.
Key Details
AMD's EPYC processors will handle workload management and data preparation. They will integrate with Google's TPU AI acceleration technology. The system uses AMD's Secure Encrypted Virtualization (SEV) technology to protect sensitive data during processing. Dan McNamara, senior vice president at AMD, highlighted the need for a strong CPU foundation to meet the demands of advanced AI systems.
Background
According to Seeking Alpha, AMD's data center business is expected to grow 50% sequentially in Q4. This growth is driven by AI GPU deals with major clients like OpenAI, Meta, and Anthropic. The company aims for $100 billion in revenue by 2027. EPS estimates for 2028 are nearing $25. Despite recent market doubts, AMD's stock is seen as a long-term bargain. It is trading at 13 times the projected 2028 EPS.
Related coverage: AMD Reports Strong Q3 Earnings, Projects 80% Revenue Growth, Indian Stocks Surge as AI Trade Reversal Hits Global Markets.
The rise in AMD's stock may affect technology sector indices. This is especially true for those focused on semiconductor and cloud computing stocks. Investors might reevaluate AMD's growth potential due to increasing AI adoption and partnerships. Keep an eye on AMD's upcoming earnings report for more insights into its growth and market position.
Based on reporting by: livemint.com, seekingalpha.com