AMD stock surged more than 22% in December as investors enthusiastically embraced the introduction of its new Instinct MI300 accelerators, specifically designed for running advanced artificial intelligence (AI) models. The market had eagerly awaited this launch, and the positive response from investors was evident.
Advanced Micro Devices (NASDAQ: AMD) announced that the latest MI300X accelerator offers industry-leading memory bandwidth for generative AI, delivering top-notch performance for large language model training and inference. The company also anticipates that the new chip series will contribute substantially to its data center business, projecting a revenue of $2 billion in 2024.
The company also showcased a solid clientele for its new product line, featuring tech giants like Microsoft Corporation (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), OpenAI, and Oracle Corporation (NYSE: ORCL).
Market dynamics also played a role in AMD’s surge, with the broader market experiencing advancements. The Fed’s projection of lower interest rates in 2024 further contributed to the positive momentum for AMD stock.
Furthermore, AMD stock received a boost from Micron’s better-than-expected results. Micron Technology, Inc. (NASDAQ: MU), a key player in the memory-chip sector and considered a bellwether for the broader semiconductor market, reported a return to revenue growth despite posting a notable loss on the bottom line.