TL;DR:
- Reports suggest Microsoft was partnering with AMD to venture into the AI processor market.
- Microsoft clarified it’s not involved in developing its own processor.
- AMD isn’t part of Microsoft’s Project Athena initiative for AI processors.
- Potential collaboration between Microsoft and AMD to financially support expansion into AI processors is not confirmed.
- Stocks of both companies have risen, but analysts expect more upside potential for AMD.
- AMD’s average price target is $98.38 per share, offering investors over 11% upside potential.
Main AI News:
According to recent reports, Microsoft was rumored to be teaming up with AMD to make a move into the AI processor market. This news was met with some skepticism from investors and media outlets alike. However, a Microsoft spokesperson has since come forward to clarify the situation, stating that the company is not involved in developing its own processor.
Frank Shaw, a representative for Microsoft, spoke with The Verge to confirm that AMD is not part of Project Athena, which is Microsoft’s initiative to create an AI processor. Although Shaw did not comment on any potential collaboration between Microsoft and AMD to financially support the expansion of AI processors, both companies’ stocks have risen in today’s trading session.
It’s worth noting that analysts appear to have higher expectations for AMD’s stock than for Microsoft’s. With an average price target of $98.38 per share, AMD offers investors more than 11% upside potential. As the demand for AI continues to rise, it will be interesting to see how these two tech giants navigate the evolving landscape of the processor market.
Conlcusion:
The recent rumors of a potential partnership between Microsoft and AMD in the AI processor market have caused some buzz among investors and media outlets. However, Microsoft’s clarification that it is not developing its own processor and that AMD is not part of Project Athena seems to indicate that the collaboration may not be as significant as initially thought.
Nevertheless, the positive movement in the stocks of both companies suggests that the market remains optimistic about their prospects in the AI processor market. Additionally, the higher expected upside potential for AMD compared to Microsoft indicates that investors may view AMD as a stronger player in this particular market.
