What's Going On With AMD Stock Wednesday?
Portfolio Pulse from Anusuya Lahiri
AMD stock is experiencing volatility following a DigiTimes report that cloud service providers are considering AMD's LLM chip as an alternative to Nvidia's. A separate report suggests AMD is unlikely to transfer 3nm chip orders to Samsung, given its ongoing work with Taiwan Semiconductor Manufacturing Company (TSMC). BofA analyst Vivek Arya has reduced AMD's price target to $130 from $135, citing pressure from Nvidia's full-stack AI platform on AMD's data center GPU market share. AMD CEO Dr. Lisa Su is currently visiting Taiwan, where she is expected to meet with TSMC CEO Dr. C.C. Wei.
July 19, 2023 | 4:42 pm
News sentiment analysis
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POSITIVE IMPACT
AMD is expected to continue its partnership with TSMC for 3nm chip orders.
The news that AMD is likely to continue its 3nm chip orders with TSMC rather than transferring to Samsung could potentially increase demand for TSMC's services, positively impacting its stock.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 60
NEUTRAL IMPACT
AMD's stock is volatile due to potential adoption of its LLM chip by cloud service providers and a reduced price target from BofA.
The news of cloud service providers considering AMD's LLM chip as an alternative to Nvidia's could potentially increase demand for AMD's products. However, the reduced price target from BofA due to pressure from Nvidia's AI platform on AMD's market share could negatively impact the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Nvidia's full-stack AI platform is cited as a pressure on AMD's data center GPU market share.
Nvidia's AI platform is seen as a competitive threat to AMD, potentially impacting AMD's market share. However, the direct impact on Nvidia's stock is not clear from the news.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 60
NEUTRAL IMPACT
AMD CEO Dr. Lisa Su is expected to meet with the chairman of Pegatron Corp during her visit to Taiwan.
The news of a potential meeting between AMD's CEO and the chairman of Pegatron Corp could indicate a potential partnership or deal, but the direct impact on Pegatron Corp's stock is not clear from the news.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
AMD is unlikely to transfer 3nm chip orders to Samsung.
The news that AMD is unlikely to transfer its 3nm chip orders to Samsung could potentially decrease demand for Samsung's services, negatively impacting its stock.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 60