AMD’s AI Software Enhancements: The Key To Future Growth

Summary:

  • Advanced Micro Devices, Inc. is making significant strides in software development with its ROCm stack and AI capabilities, aiming to close the gap with Nvidia’s CUDA.
  • Its acquisition of Silo AI enhances its AI expertise, potentially positioning it as a viable alternative to Nvidia in AI solutions.
  • The successful launch of AMD’s MI300X AI accelerator and its adoption by major hyperscalers like Microsoft, Meta, and Oracle bolster its growth prospects.
  • The company must improve its free cash flow to justify its current valuation.

AMD office in Markham, Ontario, Canada.

JHVEPhoto

My buy recommendation of Advanced Micro Devices, Inc. (NASDAQ: AMD) on September 9, 2024, has advanced by 3.60% compared to the S&P 500’s (SPX) 3.91% rise. The company reported its third-quarter 2024

The third quarter of FY 2024 reported Free Cash Flow TTM

(Trailing 12 months in millions)

$1156
Terminal growth rate 4%
Discount Rate 9%
Years 1 -10 growth rate 34%
Current Stock Price (October 31, 2024, closing price) $144.07
Terminal FCF value $22.441 billion
Discounted Terminal value $189.585 billion
FCF margin 6.4%


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Leave a Reply

Your email address will not be published. Required fields are marked *