TL;DR:
- Ken Griffin, CEO of Citadel hedge fund, has acquired over 6.5 million shares of Advanced Micro Devices (AMD) worth more than $598 million.
- AMD has shifted its focus from graphics processing units to cloud computing and artificial intelligence.
- The company has launched the Ryzen 7040 mobile chip with an onboard AI engine and is soon to release the MI300 accelerated processing unit.
- Despite a dip in adjusted profits, AMD’s full-year revenue grew by 44% in 2022, and the company increased R&D spending by 25% to capitalize on the growing demand for data centers and AI.
- AMD’s stock is currently trading at five times next year’s sales, making it an attractive opportunity for investors like Griffin.
Main AI News:
Advanced Micro Devices, a leading technology company, has recently caught the attention of Wall Street’s biggest players, including Ken Griffin, founder, and CEO of the hedge fund Citadel. With Citadel’s recent acquisition of over 6.5 million shares worth more than $598 million, Griffin is placing a big bet on AMD’s future success.
AMD has long been known for its graphics processing units (GPUs) favored by gamers, but the company has shifted its focus to encompass cloud computing and artificial intelligence. The Ryzen 7040 mobile chip, boasting an onboard AI engine, and the upcoming MI300 accelerated processing unit, combining CPU and graphics capabilities, are just a few examples of AMD’s commitment to advancing AI technology. CEO Lisa Su promises that the MI300 will not only accelerate AI systems but also reduce the time required for training.
Despite a 25% dip in adjusted profits, AMD’s full-year revenue grew by 44% in 2022, as the company increased R&D spending by 25% to take advantage of the growing demand for data centers and AI. With the stock currently trading at five times next year’s sales and at its lowest point since pre-pandemic, Griffin and other savvy investors see a major opportunity in AMD’s cutting-edge AI chips.
Conlcusion:
The recent acquisition of AMD shares by Ken Griffin and Citadel hedge fund highlights the growing interest in the company’s next-generation artificial intelligence chips. Despite a dip in adjusted profits, the company’s commitment to research and development in the AI and data center markets, along with its record-breaking revenue growth, suggests a strong future performance.
The current trading price of 5 times next year’s sales also presents a compelling investment opportunity for those in the market. Overall, the increased attention to AMD’s AI chips is a positive indication of the growth and development of the technology market.
