Advanced Micro Devices, Inc. (AMD) Powers Vultr with Instinct MI325X GPUs for AI Cloud Expansion

We recently compiled a list of the 15 AI Stocks Every Investor Should Be Watching. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against the other AI stocks.

No conservation about artificial intelligence today stands complete without the mention of DeepSeek. As reported by The Information, the Chinese AI startup that has startled the world of AI with its self-proclaimed cheaper and more efficient AI models is now looking for outside funding. The startup has drawn interest from names such as Alibaba and state funds, the report noted. These low-cost AI models that DeepSeek has presented recently have stirred up investor skepticism, making it quite evident that China is leaving no stone unturned to keep up in the AI arms race.

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With fame, however, comes challenges. For DeepSeek, the surge in demand has caused outages at the small startup. Due to this reason, the company needs more AI chips and servers so that it can handle the fast-growing usage of its models, all while supporting model development. According to the report, funds that have contacted DeepSeek include China Investment Corp and the National Social Security Fund. It further noted that the startup’s executives and hedge fund parent, High-Flyer Capital Management, are also discussing the potential shift to building a business that generates revenue, eventually profiting from research.

The move is in line with China’s efforts to bolster the country’s economy and advance its technological capabilities. This has been made evident from China’s President Xi Jinping’s recent meeting with private sector business leaders, including Alibaba co-founder Jack Ma and Liang Wenfeng, founder of DeepSeek.

“It’s a tacit acknowledgement that the Chinese government needs private-sector firms for its tech rivalry with the United States. The government has no choice but to support them if it wants to compete with the United States.”

-Christopher Beddor, deputy China research director at Gavekal Dragonomics in Hong Kong.

In a similar move announced before this news, OpenAI also plans to revamp its for-profit arm into a public benefit corporation. The move intends to ease restrictions imposed by its current non-profit parent and also increase investments.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Is Advanced Micro Devices, Inc. (AMD) the Most Promising Technology Stock to Buy Now?

A close up of a complex looking PCB board with several intergrated semiconductor parts.

Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops semiconductors, providing processors and graphics technologies for gaming, data centers, and AI-driven high-performance computing. On February 18, Vultr, a privately-held cloud infrastructure company, announced that it has deployed AMD’s Instinct™ MI325X GPUs in its Chicago data center region.

The deployment of AMD GPUs makes Vultr the first cloud provider to offer these cutting-edge AI solutions. The news follows Vultr’s growth financing at a $3.5 billion valuation and an expanded collaboration with AMD to provide access to AMD Instinct™ MI300X GPUs and the ROCm™ open software ecosystem. Through the AMD-Vultr collaboration, businesses have the power to build and scale AI-native applications on robust cloud infrastructure.

“Designed for exceptional performance and efficiency, the AMD Instinct MI325X accelerators excel in demanding AI tasks such as foundation model training, fine-tuning, and inferencing. With the addition of the AMD Instinct MI325X, Vultr is empowering businesses with cutting-edge AI technology to harness the necessary computational power and efficiency to drive AI advancement and accelerate growth.”

-Negin Oliver, corporate vice president of business development, Data Center GPU Business Unit, AMD.

Overall AMD ranks 8th on our list of the AI stocks every investor should be watching. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.