Advanced Micro Devices

AMD

Market cap $326B

AMD's surging free cash flow suggests a stronger business than its stock price reflects. Strong demand for advanced chips used in data centers is fueling the company's profitability.

Advanced Micro Devices has inked a big commitment with Meta Platforms for its latest GPUs. AMD will also give Meta a stake in its stock, incentivizing it to help the chipmaker succeed.

The market for microchips on Friday is getting off to a sluggish start, as traders continue to worry about the AI bubble, and the lack of capital expenditure that many companies could be facing.

Spring is about to be sprung, and along with it come several hot buys for traders and investors. The questions to be answered include what drives the market, the catalysts at hand, and how high the stock may go.

The evolving tariff landscape is reshaping market leadership in ways that extend well beyond traditional winners and losers. That intersection between policy shifts, economic uncertainty, and innovation ties together the broader investment narrative shaping markets today. The most compelling opportunities now appear in areas ranging from precious metals to dominant platforms and key suppliers within the AI ecosystem.

Advanced Micro Devices is upgraded to a strong buy, driven by accelerating data center growth and major partnership wins. AMD's Q4 revenue hit a record $10.3B, up 34% YoY, with data center segment growth accelerating to 39% YoY. Recent Meta deal and expanded India partnership underscore AMD's rising competitiveness against Nvidia and Broadcom in AI chips.

AMD (AMD 3.45%) is entering what could be the most important product cycle in its AI history. With the MI350 ramping and the MI450 set to ship to OpenAI, data center growth may reaccelerate faster than the market expects.

AMD is benefiting from strong demand for EPYC server CPUs and growing adoption of its Instinct GPUs. AIP is playing a crucial role in driving Palantir's new customer acquisition as well as the expansion of existing customers' commitments.

Advanced Micro Devices, Inc. delivered strong Q4 FY25 results, with 34% top line growth driven by data center and client & gaming segments. Despite robust revenue momentum and AI tailwinds, AMD faces margin uncertainty due to high R&D spend and elevated inventory risk. Competitive pressures, especially from Nvidia in AI accelerators, limit AMD's long-term growth potential and justify a cautious outlook.

Nutanix Inc (NASDAQ: NTNX) shares are trading higher Thursday morning after the company paired mixed fiscal second-quarter results with a new artificial-intelligence partnership and equity investment from Advanced Micro Devices Inc (NASDAQ: AMD).