Advanced Micro Devices (NASDAQ: AMD) announced game-changing news. It will now integrate Rapt.AI into all its MI300X, MI325X, and soon-to-be-released MI350 line of GPUs. The integration is critical to Advanced Micro Devices' AI market position because it will help unlock the full potential of its AI semiconductor technology. Already viewed as superior to NVIDIA’s (NASDAQ: NVDA) GPU for some workloads, integrating Rapt.AI into AMD’s Instinct line will help accelerate its growth and market share.
What is Rapt.AI? It is a workload automation and optimization platform for GPUs, GPU clusters, and GPU clouds. The service helps data scientists maximize the massive computing power of GPU technology with AI. It allocates resources, helps prevent bottlenecks, improves training time, reduces costs, and automates repetitive, tedious tasks that humans have previously done—time-consuming tasks like infrastructure setup.
Rapt.AI can automate and deploy AI workloads seamlessly across cloud environments. AMD investors should take away this significant advancement in the company’s software ecosystem, which will help increase and improve training time, inference, scalability, and total costs for its clientele.
And there are already signs of AMD taking share in critical areas. While it still lags NVIDIA’s first-mover position in GPUs, it is rapidly catching up, and its CPU and PC businesses are taking share today. Data from Q1 reveals AMD outpacing Intel for the first time in the CPU market after a 4.5% market share gain in 2024. Critical product lines include the Epyc line for data centers and the Ryzen line for PCs. Catalysts for 2025 include persistently high demand for data center technology and the budding PC upgrade cycle driven by AI at the edge of computing.
Advanced Micro Devices Completes Acquisition of ZT Systems
Advanced Micro Devices completed the acquisition of ZT Systems in CQ1 2025 and expects the move to be accretive to shareholders by year-end. The acquisition is critical for numerous reasons centered on data centers, scalability, and time to market. ZT Systems is a rack-scale design and deployment expert and is a natural fit for AMD's DC business.
What this means for the company is that its AI infrastructure revenue stream has been completely unblocked. AMD now offers an end-to-end solution for AI infrastructure that runs from the chips that power it to the software that runs them and the expertise to deploy them at scale.
Analysts' Stock Price Reset Opens Opportunity for AMD Investors
[content-module:Forecast|NASDAQ: AMD]The analysts are bullish on Advanced Micro Devices, but the story in early 2025 is a price reset.
Analyst trends include numerous price target reductions and a few downgrades from Strong Buy or Buy to more cautious Buy or Hold ratings, resulting in a Moderate Buy consensus. However, the market reaction appears to have been an overcorrection.
AMD stock is trading at deep-value levels in early Q2, with catalysts on the horizon.
The stock is a deep value for investors because it is 10% below the analysts’ lowest price target, 50% below the consensus, and only 10X its 2028 earnings, with robust growth anticipated.
Potential catalysts include outperformance in upcoming quarterly results, accelerating growth, visible market share gains, and a shift in analysts' sentiment.
Outperformance, accelerating growth, and market share gains will likely lead them to upgrade and raise their price targets.
AMD Stock Finds Support Near $100, Signaling a Potential Bottom
AMD’s stock price retreated by more than 55% from its high in 2024 to the low in 2025. That decline appears to be over, with the market showing significant signs of support at a critical level. That level is near $100, and the price point at which the stock traded before the AI bubble inflated. The market is pricing in no AI premium at this level and no growth, which is mispricing the stock.
The price action is compounded by the stochastic and MACD indicators, which are divergent from the new lows and show a bullish crossover consistent with a bottom in the stochastic case. MACD is on the verge of a bullish swing that could begin in April. AMD is slated to report earnings at the end of the month.
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