Advanced Micro Devices (NASDAQ: AMD) shares have gained 10%, outperforming the broader Zacks Computer & Technology sector's return of 9.7%.
The semiconductor chip provider has been riding on strong performance of the Data Center segment. In the second quarter of 2024, Data Center revenues surged 114.5% year over year to $2.83 billion and accounted for 48.6% of total revenues. Sequentially, revenues increased 21%.
Exiting second-quarter 2024, AMD had more than 900 public cloud instances available, with Netflix and Uber selecting fourth-gen EPYC public cloud instances. In the data center AI business, MI300 quarterly revenues exceeded $1 billion for the first time.
Enterprise and Cloud AI customer pipeline remains robust. AMD and its partners, including Microsoft, Oracle, DELL, HPE, Lenovo, and Supermicro, have instinct platforms in production.
So, the question that really arises in an investor's mind is - Will momentum in AMD's share price continue on the data center strength and acquisitions? Let's analyze.
AMD Stock Outperforms Sector
Image Source: Zacks Investment Research
AMD Stock Rides on Accretive Acquisitions
AMD's acquisitiveness is aimed at primarily reducing the technological gap with NVIDIA in the ongoing race for AI dominance. It has been on an acquisition spree to strengthen its AI ecosystem.
In the past 12 months, AMD has spent $125 million on a dozen of acquisitions. Nod.ai and Mipsology are some other notable acquisitions in the recent past.
It recently closed the acquisition of ...
