Advanced Micro Devices is a global manufacturer of semiconductors, listed on the Nasdaq and headquartered in the US.
The company manufactures central processing units (CPUs) for personal computers and servers, together with graphics processing units (GPUs) for gaming and data centres.
AMD is building AI technology into its future chip designs, with its CEO, Lisa Su, stating in her keynote speech at the recent Consumer Electronics Show convention in Las Vegas: “AI is truly the most important megatrend for the future of tech.”
The company has delivered impressive financial results over the last five years, driving its share price to an all-time high of more than $160 in late 2021. This was some achievement given its share price was trading at $40 only two years prior to that.
However, AMD’s share price has since fallen significantly, as slowing global demand for computing products has weighed on valuations.
Sam North, market analyst at eToro, comments: “The cost of living issue stemming from high and prolonged inflation will potentially put the brakes on the recent run of AI related stocks.”
“However, AMD is much more bullish for the second half of 2023 and analysts from Barclays and elsewhere favour the company to gain market share from one of its rivals, Intel.”
