Advanced Micro Devices (NASDAQ: AMD) stock edged higher in pre-market trading Monday following a report suggesting that Microsoft (MSFT) plans to offer its cloud computing customers a platform using AMD artificial intelligence chips, offering an alternative to systems powered by Nvidia (NVDA) chips.
According to a late Thursday report by Reuters, Microsoft intends to incorporate AMD processors into its Azure cloud computing service. The software giant will provide comprehensive details on this collaboration at its upcoming Build conference scheduled for May 21-23 in Seattle.
In addition, Microsoft plans to unveil its latest innovation, the Cobalt 100 custom processors, during the conference, as reported by Reuters.
Azure customers will soon have access to clusters featuring AMD’s MI300X AI chips, providing them with increased flexibility and performance for AI workloads. Azure users will also have the option to leverage Nvidia’s technology or Microsoft’s proprietary Maia chips for AI tasks.
In response to this development, Citi has reaffirmed its bullish stance on AMD stock, maintaining a Buy rating and setting a price target of $176.00. The endorsement from Citi underscores the positive market sentiment surrounding AMD’s partnership with Microsoft and the potential for growth in the cloud computing segment.
Meanwhile, Advanced Micro Devices has secured a prominent position in Wolfe Research’s coveted list of top stocks, displacing Nvidia (NVDA). This recognition underscores the growing prominence of AMD within the semiconductor industry and signals investor confidence in the company’s long-term prospects.
Advanced Micro Devices (NASDAQ: AMD) Stock Movement
As of 10:02 a.m. (Eastern Time) Monday, AMD stock traded at $165.99, marking a 0.92% increase compared to the previous trading session.
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.
