Advanced Micro Devices (AMD) Partners In AI-Driven Drug Discovery With Absci And Oracle

Advanced Micro Devices (AMD) recently formed a collaboration with Oracle Cloud Infrastructure and Absci to advance AI-driven drug discovery, leveraging its cutting-edge hardware like the Instinct MI355X GPUs. This partnership, alongside AMD's alliances with Aligned and HCLTech, showcases its commitment to technological innovation. Over the last quarter, AMD's stock price increased by 34%, which aligns with the tech-heavy Nasdaq Composite's overall positive trajectory and new record highs. The strategic partnerships and positive earnings results, including a significant increase in sales and net income, likely contributed to AMD's strong share performance during this period.

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Advanced Micro Devices (AMD) is experiencing a notable phase with its recent collaboration with Oracle Cloud Infrastructure and Absci. This partnership could potentially enhance AMD's position in AI-driven drug discovery by leveraging its Instinct MI355X GPUs. While this aligns with AMD's aim to push technological boundaries, it also faces headwinds due to US export restrictions and increased competition. Over the past five years, AMD's total shareholder return was substantial at 103.36%, indicating significant growth compared to its more recent challenges where it underperformed the US Semiconductor industry, which returned 45.9% over the last year.

The collaboration could positively impact AMD’s revenue and earnings forecasts, especially in sectors like AI and cloud computing, given the acceleration in these fields. However, geopolitical factors and manufacturing dependencies might offset these gains, potentially affecting the company’s long-term growth trajectory. With its current share price at US$155.67 and an analyst consensus price target of US$185.77, the stock's present valuation reflects a 19.34% discount to the price target. This suggests room for upside based on analysts' expectations, despite potential risks and uncertainties highlighted in the narrative. Investors should consider both the collaborative opportunities and the broader industry challenges when evaluating AMD's market position.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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