AMD Stock – Don't Miss the AI Supercycle

The Story of AMD

In 1969, Advanced Micro Devices (AMD) was founded by Jerry Sanders and seven other engineers with the goal of designing cutting-edge semiconductors. Throughout the 1970s and 1980s, AMD competed with industry giant Intel in the microprocessor market, eventually becoming a key player in the industry. Despite facing many challenges over the years, including financial struggles and legal battles, AMD has managed to consistently innovate and adapt to changing market conditions.

Today, AMD is known for producing high-performance CPUs and GPUs that are used in a wide range of products, from gaming consoles to supercomputers. With the rise of artificial intelligence (AI), AMD is once again poised to gain a significant share of a rapidly growing market.

The AI Supercycle

The AI Supercycle refers to the rapid growth of the AI industry as a whole, which has been fueled by advancements in machine learning, natural language processing, and other AI technologies. According to a report by MarketsandMarkets, the AI market is expected to grow from $21.46 billion in 2018 to $190.61 billion by 2025, representing a compound annual growth rate (CAGR) of 36.6%.

This growth is driven by several factors, including increasing demand for AI-powered products and services, rising investments in AI research and development, and the emergence of new use cases for AI in various industries.

As the AI market continues to expand, companies that produce the hardware and software needed to power AI systems are poised to benefit. This includes companies like AMD, which produces high-performance GPUs that are well-suited for AI workloads.

• In 2019, AMD announced that Google had selected its Radeon Instinct GPUs to power its cloud-based Stadia gaming platform. This decision was driven by the need for high-performance GPUs that could handle the demands of streaming games over the internet. AMD's GPUs were chosen over competitors like Nvidia due to their superior performance in these workloads.
• In 2020, AMD announced a new line of Ryzen CPUs that are specifically designed for use in laptops and notebooks. These CPUs offer excellent performance while also being highly power-efficient, making them ideal for use in portable devices. This move was driven by the increasing demand for AI-powered applications in mobile computing devices.
• AMD has also made significant investments in AI research and development, including its acquisition of Xilinx in 2020. This acquisition will allow AMD to expand its offerings in the AI and data center markets by providing new technologies and capabilities.

Conclusion

1. AMD is well-positioned to benefit from the rapid growth of the AI industry.
2. The AI Supercycle is driving demand for high-performance CPUs and GPUs that can handle the demands of AI workloads.
3. AMD's investments in AI research and development, as well as its existing portfolio of high-performance CPUs and GPUs, make it a strong player in this market.