AMD: AI Day Isn't The Reason To Buy, But Server CPU Is (Rating Upgrade)

(9min)

Summary

  • Advanced Micro Devices, Inc. held their AI Day on Thursday, and the market wasn't too happy about it, with the stock closing 2% lower for the day.
  • What everyone is missing is this: the real star of the show is not AI (at least not for now), it's their server CPU roadmap.
  • AMD is expected to grab 40% of the server market this year; that's up from 0% in 2017 and shows momentum against Intel.
  • CEO Lisa Su's efforts on AI will likely pay off, grabbing a part of the $500B AI chip market, betting on customer appetite for price flexibility and alternatives to Nvidia, but that's not the catalyst now.
  • We're upgrading AMD to a strong buy, based on the server CPU roadmap.
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Advanced Micro Devices, Inc. (AMD) held their AI Day on Thursday, and for anyone looking for an “ah-ha” AI moment, this was not the place to get it. It’s safe to say the market wasn’t impressed, and

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This article was written by

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Tech Stock Pros is a team of three former technology sector engineers with a long history of investing in the tech sector.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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