AMD Stock to Soar: AI and Data Center Growth
Eli GrantSaturday, Dec 14, 2024 9:18 am ET

Advanced Micro Devices (AMD) has been on a roll in recent years, with its stock price surging and market share expanding. But the real story is yet to unfold. Here's one reason why AMD stock is poised to soar over the next eight years.
AMD's advancements in AI hardware, such as the Instinct MI300 and MI350, are set to revolutionize its data center revenues and overall growth. The company's data center revenues have already seen a substantial increase, with graphics processing units (GPUs) generating $2.3 billion in 2023, a figure expected to surpass $5 billion in 2024. This growth is driven by strong demand from large-scale customers for AMD's fastest AI accelerators. As AMD continues to innovate and launch new products like the Instinct MI350 in 2025, its data center revenues are expected to maintain this rapid growth trajectory, fueling the company's overall expansion.

AMD's strategic partnership with Liquid AI and its investment in the company are significant contributors to its long-term growth prospects. Liquid AI, a generative AI startup, develops Liquid Foundation Models (LFMs), which are smaller, more efficient AI models for enterprise use. AMD's partnership with Liquid AI will help optimize LFMs with AMD's graphic, central, and neural processing units, enhancing the performance and efficiency of these AI models. This collaboration will not only strengthen AMD's position in the AI market but also open up new revenue streams as LFMs gain traction in various industries. Additionally, AMD's investment in Liquid AI demonstrates its commitment to the AI sector and its potential for future growth. As AI continues to evolve and become more prevalent, AMD's strategic partnership with Liquid AI positions the company well for long-term success.
In conclusion, AMD's advancements in AI hardware and its strategic partnership with Liquid AI are set to drive its stock price higher over the next eight years. As AI adoption grows and data center revenues surge, AMD is well-positioned to capitalize on these trends and deliver impressive returns for investors. Keep an eye on AMD as it continues to innovate and expand its presence in the AI and data center markets.
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