AMD's AI Conference Sparks Market Reaction Despite Product Launches
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Why AMD Stock Sank Today | The Motley Fool
AMD actually had good news for investors today. So why did the AI stock fall? Advanced Micro Devices (AMD -4.00%) stock lost ground Thursday following the company's Advancing AI conference. The semiconductor specialist's share price ended the day down 4%. AMD's Advancing AI conference delivered new product reveals and promising sales indicators, and the pullback for the company's stock is likely a reflection of "buy the rumor, sell the news" dynamics. In other words, the bullish catalysts from new products and partnerships had likely already been priced in -- and investors took profits in conjunction with the company's conference. At its Advancing AI conference today, AMD announced the launch of its Ryzen AI Pro 300 series mobile processors. The new central processing unit (CPU) has been designed to deliver up to three times better performance for AI applications and improved integration with Microsoft's Copilot+ system. AMD also showcased its EPYC data center CPUs and its Instinct MI325x AI graphics-processing-unit (GPU) accelerator. The company stated that its EPYC 5th Gen 9965 is currently the best-performing CPU for data center servers and also noted that its top-of-the-line Instinct accelerator beats Nvidia's H200 HGX along some performance metrics. In addition to product news and updates from AMD, Super Micro Computer announced the launch of news servers, GPU accelerators, and storage servers featuring the company's EPYC 9005 Series processors and Instinct MI325X GPUs. Super Micro Computer has emerged as a leading provider of high-performance servers for AI applications, and it's possible that new product wins with the company could wind up being a significant sales driver for AMD. AMD is aiming to gain more market share in the data center processing market, and the company's Advancing AI conference today generally suggested that the chip specialist is on track with its strategic roadmap. While there weren't any shocking new announcements at the conference, the pullback for the stock shouldn't be taken as a deeper bearish indicator.
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What Happened With AMD Stock Today? - Advanced Micro Devices (NASDAQ:AMD)
Several partners, including Dell, Google Cloud, HPE, Meta, Microsoft and Supermicro showcase how they are deploying AMD's AI solutions. Advanced Micro Devices, Inc. AMD shares traded lower Thursday as the company hosted its "Advancing AI 2024" event. The Details: AMD launched several new high-performance computing solutions at the event, including fifth Gen AMD EPYC server CPUs, AMD Instinct MI325X accelerators, AMD Pensando Salina DPUs, AMD Pensando Pollara 400 NICs and AMD Ryzen AI PRO 300 series processors for enterprise AI PCs. Read Next: What's Going On With First Solar Stock? "The data center and AI represent significant growth opportunities for AMD, and we are building strong momentum for our EPYC and AMD Instinct processors across a growing set of customers," said AMD Chair and CEO Dr. Lisa Su. "With our new EPYC CPUs, AMD Instinct GPUs and Pensando DPUs we are delivering leadership compute to power our customers' most important and demanding workloads. Looking ahead, we see the data center AI accelerator market growing to $500 billion by 2028," added Su. Several partners, including Dell, Google Cloud, HPE, Meta, Microsoft and Super Micro, showcased how they deploy AMD's AI solutions at scale. Microsoft CEO Satya Nadella pointed to the company's long-standing collaboration with AMD across its product offerings and Google highlighted how AMD EPYC processors power a wide range of instances for AI, high performance and general purpose and confidential computing. According to data from Benzinga Pro, AMD shares moved on heavy volume during Thursday's event and are trading above the stock's 50-day moving average of $149.92. Will AMD Stock Go Up? When trying to assess whether or not Advanced Micro Devices will trade higher from current levels, it's a good idea to take a look at analyst forecasts. Wall Street analysts have an average 12-month price target of $191.19 on Advanced Micro Devices. The Street high target is currently at $250 and the Street low target is $156. Of all the analysts covering Advanced Micro Devices, 14 have positive ratings, two have neutral ratings and no one has a negative rating. In the last month, three analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Advanced Micro Devices have performed in recent history. Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Advanced Micro Devices is 18.47% up year-to-date. The average analyst price target suggests the stock could have further upside ahead. For a broad overview of everything you need to know about Advanced Micro Devices, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today. AMD Price Action: According to Benzinga Pro, AMD shares ended Thursday's session 4% lower at $164.18. Read Also: What Happened With Celsius Holdings Stock Today? Photo: Shutterstock Market News and Data brought to you by Benzinga APIs
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AMD's stock dips 4% following its Advancing AI conference, despite unveiling new AI-focused products and partnerships. The event highlighted AMD's strategic push into the AI market, with new processors and accelerators aimed at data centers and enterprise AI applications.
AMD Unveils New AI-Focused Products at Advancing AI Conference
Advanced Micro Devices (AMD) hosted its Advancing AI conference, showcasing a range of new products and partnerships aimed at strengthening its position in the rapidly growing AI market. Despite the positive announcements, AMD's stock experienced a 4% decline, closing at $164.18 on Thursday
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.Key Product Launches and Performance Claims
AMD introduced several high-performance computing solutions at the event:
- Ryzen AI Pro 300 series mobile processors, designed to deliver up to three times better performance for AI applications and improved integration with Microsoft's Copilot+ system
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. - EPYC 5th Gen 9965 data center CPUs, which AMD claims is currently the best-performing CPU for data center servers
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. - Instinct MI325x AI GPU accelerator, which AMD asserts outperforms Nvidia's H200 HGX in some performance metrics
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. - AMD Pensando Salina DPUs and Pensando Pollara 400 NICs for enhanced data center networking capabilities
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Strategic Partnerships and Industry Support
The conference highlighted AMD's collaborations with major tech companies:
- Microsoft CEO Satya Nadella emphasized the long-standing partnership with AMD across various product offerings
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. - Google Cloud showcased how AMD EPYC processors power a wide range of instances for AI, high-performance computing, and confidential computing
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. - Other partners, including Dell, HPE, Meta, and Super Micro, demonstrated their deployment of AMD's AI solutions at scale
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Market Outlook and Analyst Perspectives
AMD CEO Dr. Lisa Su expressed optimism about the company's growth prospects in the AI sector:
"The data center and AI represent significant growth opportunities for AMD... We see the data center AI accelerator market growing to $500 billion by 2028," stated Su
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.Wall Street analysts maintain a positive outlook on AMD's stock:
- The average 12-month price target is $191.19, with a high of $250 and a low of $156
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. - 14 analysts have positive ratings, two have neutral ratings, and none have negative ratings
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Market Reaction and Investor Sentiment
Despite the seemingly positive news, AMD's stock declined 4% following the conference. This reaction may be attributed to:
- "Buy the rumor, sell the news" dynamics, suggesting that the bullish catalysts had already been priced into the stock
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. - Profit-taking by investors in conjunction with the company's conference
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. - The absence of shocking new announcements, although the conference generally indicated that AMD is on track with its strategic roadmap
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It's worth noting that AMD's stock is still up 18.47% year-to-date, outperforming the average stock market return of approximately 10% per year
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.As AMD continues to push into the AI market, investors and industry observers will be closely watching the company's ability to compete with established players like Nvidia and capture a significant share of the growing AI accelerator market.
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