AMD Stock Taking Positions to Benefit From AI Tech Growth

Advanced Micro Devices (NASDAQ: AMD) is among the companies poised to gain benefits from the boom in Artificial Intelligence (AI) technology. The company has managed to take advantage of evolving its tech, and the AMD stock price rise proves the accelerated growth.

AMD Heading Towards Growth on AI’s Back

With the forward motion, AMD is taking care of its competition in the AI space from Nvidia to Intel. Recently, it revealed a strong AI GPU to wrestle with the AI chip of Nvidia (NASDAQ: NDVA). Furthermore, AMD is seeking expansion in Ireland despite Intel’s presence in the Dublin region.

AI technology had been a buzzword until OpenAI’s ChatGPT entered the market. The large language model chatbot’s growth is nothing short of extraordinary. The Microsoft-funded AI product took the world by storm, and it hit a huge milestone of 100 Million active users within a short two months span.

Owing to this speed, ChatGPT has taken the spot of being the fastest-growing platform in the world. Given its consistent growth and usage, the demand or the race towards AI tech’s growth does not seem to pause.

Today, more ChatGPT-like large language models are entering the industry. As a result, chip-manufacturing companies like AMD will have the opportunity to take part in the growing trend since the start of this year reflects.

NVDA stock and AMD stock prices have seen impressive growth in the past several months. Nvidia stock price rose up to a crazy 200% year to date from $143.15 on January 3 to $430.25 per share today. In the queue, AMD managed to secure the place after NDVA with about significant growth of 72% in a similar timeframe.

AMD Stock Price Chart Analysis

Recently, AMD stock price attained its 52-week high at $132.8 on June 13. However, the stock price took a dive and struggled to maintain the upward movement, and it is currently trading at $110, which could possibly act as support for a while. The range is also around 50-DMA level.

If it breaks the support, the downward momentum could bring the stock price down to $92, also the range of 200-DMA. Overall, AMD’s stock price is likely to remain in the range of $132 to $92.

Moving Ahead With Bold Moves

Earlier this month, AMD was seen to take bold steps towards AI when it was reported to reveal its AI chip. The chip dubbed MI300X is the company’s most advanced and flagship graphic processing unit (GPU) focused on AI operations.

AMD described the chip being built upon CDNA architecture and how it will provide the processing speed and efficiency in ChatGPT-like large language and advanced models the AI industry is likely to introduce in the future.

The memory of the AMD AI chip was one of the highlights, with a maximum capacity of 192 gigabytes (GB). With such capability, the chip stands far ahead of the existing capacity of Nvidia’s H100, which holds 120 GB of maximum capacity. The company announced its launch in Q3 2023 and large-scale production by the last quarter of this year.

Meanwhile, the company is reported to plan for strategic research and development projects focusing on investment. The $135 Million worth of investment in Ireland would be infused in the upcoming four years for the plan dubbed adaptive computing research.

AMD stated it expects the fund to be utilized for projects like technology development for networking, data centers, 6G telecoms infrastructure, and, most importantly, AI technology.

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