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AMD Rockets to Third in WSB Rankings on Liquid Cooling Breakthrough
AInvestTuesday, Oct 8, 2024 7:01 am ET
1min read
AMD --

Advanced Micro Devices (AMD) made significant strides in the latest Wall Street Bets (WSB) rankings, climbing to third place with an impressive 70-position jump from the previous day. The company's stock surged by 15.79%, closing at $47.74, marking the most substantial single-day increase since March 4.

This leap was largely attributed to AMD's announcement of its new liquid cooling solutions. These are being deployed in AI training models and server production, which have been embraced by some of the world's largest AI factories. The company disclosed that it ships more than 100,000 liquid-cooled GPUs quarterly, marking a significant milestone in their technology offerings.

The introduction of these state-of-the-art solutions, including Coolant Distribution Units and advanced cooling software, promises to reduce both hardware and ongoing operational costs in data centers. This innovation addresses investor concerns about potential cooling inefficiencies, proving pivotal for AMD amidst previous challenges such as allegations of accounting irregularities and delayed financial reporting.

With AMD's close alliance with Nvidia, being its third-largest customer and accounting for 9% of Nvidia’s revenue, the news positively influenced Nvidia's stock, which saw a 4% uptick. This relationship underscores AMD's strategic position in the AI ecosystem, particularly in supporting the efficiency and productivity of AI data centers.

Market analysts note that the demand for AMD's DLC-equipped GPUs reflects a robust global interest in AI advancements, especially amid the construction of large-scale AI facilities. As a preferred early partner for Nvidia's AI chips, AMD's innovative solutions continue to garner attention in the tech industry.

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