AMD Stock Jumps Following Investment in AI Startup Somite.ai

AMD stock rose 1.82% on Friday, following a strategic investment in AI startup Somite.ai. AMD Ventures invested in the company, which will use AMD Instinct GPUs to power its capsule-based data generation platform. Somite.ai aims to accelerate development for novel cell therapies and reduce timelines for patients. The investment is seen as a positive move for AMD, with the company's stock up 38% year-to-date and 5.63% over the past 12 months.

Advanced Micro Devices (AMD) stock surged 1.82% on Friday, July 2, 2025, following a strategic investment in AI startup Somite.ai. AMD Ventures, the investment arm of AMD, made a significant move by investing in Somite.ai, which will utilize AMD Instinct GPUs to power its capsule-based data generation platform. This investment is expected to accelerate the development of novel cell therapies and reduce timelines for patients.

Somite.ai specializes in building large-scale foundation models focused on transforming cell therapy. The company aims to generate differentiation data at approximately one-thousandth the cost of traditional methods, thereby unlocking unprecedented scale and precision for training powerful predictive models [1]. This collaboration between AMD and Somite.ai is seen as a strategic move that leverages AMD's computational capabilities to enhance Somite.ai's platform.

The investment in Somite.ai comes as AMD stock has been performing well. The stock has seen a 38% year-to-date increase and a 5.63% rise over the past 12 months. The positive market sentiment surrounding AMD's investment in Somite.ai is likely a contributing factor to the stock's recent performance [2].

In contrast, AMD faced a significant 5.44% drop in stock price on July 2, 2025, following SoftBank's $2 billion investment in rival Intel. Despite this setback, AMD maintains strong financial health with robust Altman Z-Score and Piotroski F-Score indicators, suggesting low risk of bankruptcy and overall financial strength [3]. However, the company's valuation appears overvalued, with a P/E ratio of 95.72 and a GF Value of $150.02, as assessed by GuruFocus.

The competitive landscape for AMD and Intel is intense, with both companies navigating challenges and adapting to shifting market dynamics. AMD's strong market presence and financial fundamentals are key factors that investors should consider despite current valuation concerns and competitive pressures.

References:
[1] https://www.tipranks.com/news/amd-stock-jumps-alongside-investment-in-ai-startup-somite-ai
[2] https://www.ainvest.com/news/amd-stock-falls-softbank-2b-investment-intel-2508/
[3] https://www.prnewswire.com/news-releases/somiteai-announces-strategic-investment-from-amd-ventures-to-accelerate-foundation-models-for-cell-therapy-302532501.html