Is AMD Stock the Next Big AI Play?


  • Advanced Micro Devices (AMD) stock is moving after the release of its latest earnings report.
  • In it, the company notes its plans to focus on making artificial intelligence (AI) chips.
  • The company also beat estimates for the quarter.
AMD Stock - Is AMD Stock the Next Big AI Play?

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Advanced Micro Devices (NASDAQ:AMD) stock is in the news Wednesday as investors wonder if the tech company can succeed in the artificial intelligence (AI) market.

AMD is looking to increase the production of its MI300 chip as it seeks to compete with Nvidia (NASDAQ:NVDA) in the AI training market. The company is expecting these chips to find their way into data centers throughout 2023.

AMD is also considering targeting the Chinese market with its MI300 chip. That could even result in the creation of a Chinese factory specifically focused on making these AI chips. Doing so would likely help it avoid export restrictions the U.S. has on chips to China.

Lisa Su, CEO of AMD, said the following about its China plans in a statement collected by CNBC:

“As we think about certainly the accelerator market, our plan is to of course be fully compliant with U.S. export controls but we do believe there’s an opportunity to develop products for our customer set in China that is looking for AI solutions and we’ll continue to work in that direction.”

Earnings Boost AMD Stock

To go along with that AI chip news, AMD also released its latest earnings report today. The company posted adjusted earnings per share of 58 cents on revenue of $5.36 billion. Both of those are better than the 57 cents per share and revenue of $5.31 billion that Wall Street was expecting.

AMD stock is down 1.1% as of Wednesday morning.

Investors looking for more of the most recent stock market news will want to keep reading!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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