Analyst updates AMD stock forecast ahead of AI conference

Things move so fast with synthetic intelligence that even Lisa Su is amazed.

Su is the CEO of chipmaker Advanced Micro Devices (AMD,) and she confessed to being astonished by the rapid % of this technology.

Related: Analysts reset AMD stock outlooks after AI acquisition

"What has really really surprised me is barely how fast the technology is moving," Su told Yahoo Finance on the Goldman Sachs Communacopia & Technology Conference.

"What we're seeing is whether it's possible you may perhaps be a gigantic hyperscaler, or it's possible you may perhaps be an enterprise customer, or it's possible you may perhaps be essentially the most fresh AI startup, it is all about speed," she said. "We're learning at an extremely fast %."

Su said that the people at AMD have learned and done more than the previous a couple of years within the last 9 to three hundred and sixty five days "for the rationale that market is moving so fast."

"It really is a spot where innovation begets more innovation," she said, "and so we're learning a ton on the software side, we're learning a ton about what's one of many best as due to the get these these products to market."

Su said she believes the AI market that helps you to grow to $Four hundred billion by 2027, "which is big."

"And the important thing's there is now not anyone-size-fits-all in this technology race. It really is all about end-to-end AI," she added.

AMD CEO: 'We're making bets five years out'

Su also wired the importance of having a look down the road within the tech sector.

"Infrequently people get caught on what's going down today, what's going down day after today, or the next quarter," Su noted. "What I might want to say is that be aware to take a step back. As a tech company, it is our job to make bets which could perhaps be three to 5 years out."

Related: Analysts reboot AMD stock price target after earnings

AMD has made reasonably loads of acquisitions, most recently signing a definitive agreement last month to amass AI infrastructure provider ZT Systems. The acquisition, valued at $Four.9 billion, is expected to boost AMD's non-GAAP earnings by the tip of 2025.

At that time, Citi analysts said they believed the acquisition should allow AMD to higher compete with Nvidia NVDA "within the information center GPU market by technique of additional system experience and faster hyper scaler deployment times."

Citi, which reiterated its buy rating on AMD and $210 price target, said in an Aug. 21 research note that ZT Systems customers include a sort of the largest cloud hyperscalers, including Microsoft's (MSFT) Azure and Amazon's (AMZN) AWS. It develops systems using components from Nvidia, Intel (INTC) , and AMD among others.

The firm said AMD intends to sell about ninety five% of ZT Systems’ manufacturing business while keeping 1,000 engineers.

Earlier this month, AMD announced that Keith Strier had joined the corporate as senior vice president of global AI markets.

Strier, most recently vice president of global AI initiatives at AMD's arch-rival Nvidia, will likely be accountable for expanding AMD's "AI vision, driving new ecosystem capabilities and accelerating strategic AI engagements globally across private and non-private sectors."

The Santa Clara-based company, which is slated to report quarterly earnings next month, is down nearly 30% from its all-time of $227.30 in March but still up roughly forty% from a year ago.

In July, AMD beat Wall Boulevard's second-quarter earnings expectations.

AMD plans AI conference to pay attention to new chips

Revenue for the quarter was once above the midpoint of guidance, and profitability increased by a double-digit percentage as due to the higher-than-expected sales of the corporate's Instinct, Ryzen, and EPYC processors.

Data-center-segment revenue more than doubled year-over-year to a record $2.eight billion, driven by the steep ramp of Instinct MI300 GPU shipments and a double-digit percentage expand in EPYC central-processing-unit sales.

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AMD has scheduled "Advancing AI 2024," an in-person and live-streamed event for October 10.

The company said the event will exhibit its next-generation Instinct accelerators and fifth Gen AMD EPYC server processors, to boot to Networking and AI PC updates.

The event may highlight the corporate’s growing AI solutions ecosystem. AMD executives and AI ecosystem partners, customers, and developers will sign up for Su to discuss how "AMD products and software are reshaping the AI and high-performance computing landscape."

Analyst updates AMD stock outlook, cites "headwind"

Beforehand of the conference, Citi Research noted that August notebook shipments increased 15% month-over-month.

Nevertheless, the expand was once more a mirrored image of the weak demand recorded in July than a subject material strengthening of the market.

Analyst Carrie Liu forecasts that notebook demand will expand Four% quarter over quarter within the 0.33 quarter, lower than the common of 5%.

"We agree with the PC recovery appears weaker than expected following our conversations with Intel, Dell (DELL) , and Western Digital (WDC) last week," said Citi analyst Christopher Danely. "We agree with the inventory replenishment in PCs is over and may perhaps be a gentle headwind near-term."

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