Advanced Micro Devices (NASDAQ: AMD) stock saw a marginal increase in value during intraday trading on Thursday. This movement coincided with Bank of America’s projection of a multi-year boom for the semiconductor sector due to the growing demand for AI.
Bank of America has highlighted the pervasive adoption of artificial intelligence (AI) across various sectors, as evidenced by observations from Computex, a prominent tech trade show. According to BofA, the semiconductor industry is poised for robust multi-year growth, fueled by a collective commitment to AI among major tech players.
In their note, BofA underscores the widespread integration of AI technology, spanning data centers, edge computing, PCs, and smartphones. This trend, they believe, will necessitate larger semiconductor dies to accommodate the growing volume of data and processing power demanded by AI applications.
Furthermore, the rapid pace of innovation in the sector further accentuates this demand, with companies like AMD and NVIDIA (NASDAQ: NVDA) demonstrating swift product development cycles, often releasing new offerings within a year.
In addition, Bank of America referenced ARM’s forecast of a massive increase in AI-capable devices, with over 100 billion ARM units expected to support AI functionality by the end of 2025. The bank emphasizes the significance of energy efficiency in driving the industry towards advanced nodes.
Moreover, BofA noted a significant emphasis on AI-powered PCs at Computex. “We have seen overwhelming focus on AI computing power (TOPS) in semi-chip announcements at Computex,” the bank stated, pointing out that several major PC manufacturers unveiled AI-enabled PCs, signaling a notable market shift. BofA likens this trend to the rise of smartphones, suggesting that the PC industry is experiencing a similar momentum with AI integration.
Advanced Micro Devices (NASDAQ: AMD) Stock Reaction
On Thursday, AMD stock rose 0.37%, closing at $166.78, marking a 0.02% increase for the week. The trading volume was 47,153,676 shares, lower than the average daily volume of 58.80 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
