AMD Turns its Focus on AI Development
By Anthony J. Bauer, Head of Private Equity at Hennessy and Associates
AMD has seen its annual revenue grow by 20% due to success in its data centre division, and is now focussed on spending more resources in the field of AI. This has been the single biggest growth opportunity for the company in years, and the one which shows the biggest potential for the future, and the company is willing to invest in this field just as it did in the data centre market a few years ago.
Over the last few years, AMD has taken significant market share in CPU from Intel Corp, and, with the recent acquisition of Pensando, the company now has leading technology in data processing units, the chips specifically designed to process data on a large scale. AMD is now poised for more growth with AI development and investors should see this reflected in its stock price in the medium term future.