11. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Average Analyst Share Price Target Upside: 28%
Average Analyst Share Price Target: $172.04
Number of Hedge Fund Investors in Q1 2024: 124
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a personal and enterprise computing chip designer. It is Intel’s smaller rival, and the only other major player in the x86 personal computing semiconductor industry. Advanced Micro Devices, Inc. (NASDAQ:AMD) also has a robust portfolio of AI data center products, which range from its accelerators to FPGAs and allow management to boast an ‘end to end’ AI platform. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s unique place in the chip industry, where it can easily gobble any market share left by Intel in an industry that will always need chips allows it a wide moat as well. Additionally, it also benefits from being able to compete with NVIDIA in the GPU AI accelerator market as well, and even though NVIDIA’s products are faster, Advanced Micro Devices, Inc. (NASDAQ:AMD) benefits from offering customers an affordable alternative that has been used by big ticket names such as Microsoft and Tesla.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s management shared details about the firm’s data center offerings during the Q2 2024 investor call. Here is what they said:
“Turning to the segments, data center segment revenue increased 115% year-over-year to a record $2.8 billion, driven by the steep ramp of Instinct MI300 GPU shipments and a strong double-digit percentage increase in EPYC CPU sales. Cloud adoption remains strong as hyperscalers deploy fourth-gen EPYC CPUs to power more of their internal workloads and public instances. We are seeing hyperscalers select EPYC processors to power a larger portion of their applications and workloads, displacing incumbent offerings across their infrastructure with AMD solutions that offer clear performance and efficiency advantages.
The number of AMD-powered cloud instances available from the largest providers has increased 34% from a year ago to more than 900. We are seeing strong pull for these instances with both enterprise and cloud-first businesses. As an example, Netflix and Uber both recently selected fourth-gen EPYC Public Cloud instances as one of the key solutions to power their mission critical customer facing workloads. In the enterprise, sales were increased by a strong double-digit percentage sequentially. We closed multiple large wins in the quarter with financial services, technology, health care, retail, manufacturing, and transportation customers, including Adobe, Boeing, Industrial Light & Magic, Optiver, and Siemens. Importantly, more than one-third of our enterprise server wins in the first half of the year were with businesses deploying EPYC in their data centers for the first time, highlighting our success attracting new customers, while also continuing to expand our footprint with existing customers.”
