- Advanced Micro Devices (AMD) has joined Nvidia, Tesla, and Palantir as a major AI CPU player on Robinhood, becoming the ninth-most widely held stock on the platform.
- AMD's stock has seen a significant increase, up roughly 154% this year as of June 30, driven by strong demand for CPUs.
- The company's revenue in its data center division, which includes GPU and CPU sales, surged 57% year over year to nearly $5.7 billion.
- AMD CEO Lisa Su emphasized the importance of CPUs for orchestration and data processing in AI applications during the company's first-quarter earnings call.
AMD has emerged as a significant player in the AI CPU market, joining the likes of Nvidia, Tesla, and Palantir. The company's stock has gained 154% this year, making it the ninth-most popular stock on Robinhood.12
The surge in demand for CPUs has strengthened the bullish outlook for AMD, with revenue in its data center division, which encompasses both GPU and CPU sales, increasing by 57% year-over-year to nearly $5.7 billion.3
AMD CEO Lisa Su emphasized the importance of CPUs in AI applications, stating, “they all require CPUs for you know, all of the orchestration and the data processing and these other tasks.”4
Analysts are optimistic about AMD's future, with Cantor Fitzgerald analyst C.J. Muse raising his price target by $200 to $700 per share, indicating a potential 34% upside from current levels. Muse also noted that AMD is likely to benefit from ongoing supply chain challenges, projecting total industry revenue to reach approximately $3 trillion by 2029.
As AI continues to gain traction, AMD's strategic positioning in the CPU market could further enhance its stock popularity among retail investors on platforms like Robinhood.
“AMD has emerged as a significant player in the AI CPU market, joining the ranks of Nvidia, Tesla, and Palantir on Robinhood. The company's stock has gained popularity among retail investors, reflecting strong demand for its CPUs.”
The Globe and Mail
