Advanced Micro Devices (AMD) stock was down 0.67% on Monday despite reports that the semiconductor company is working with Alphabet’s (GOOGL) Google. According to these reports, Google has tapped AMD to design a next-generation Tensor Processing Unit (TPU) for the tech giant.
Summer Sale - Claim 70% Off TipRanks
- Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions
- Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks
The latest reports claim that Google is interested in using AMD’s semiconductor experience to create a new TPU focused on AI. This would reportedly see it develop a new TPU that matches AMD’s proprietary accelerator technology with built-in general-purpose cores. The advantage of this combination would be a platform that is able to handle incredibly heavy CPU tasks.
Interestingly, Google already has a long history of designing TPUs with the help of Broadcom (AVGO). With that in mind, it’s possible that Google is seeking something that Broadcom can’t provide with its next-generation TPU. If so, that could mean AMD’s expertise in the semiconductor sector could make it a better match for the project.
According to Semianalysis, “AMD’s involvement would be the first real involvement in a custom AI ASIC project, despite having a custom silicon team. AMD has strong IP especially in advanced packaging and SoIC. Additionally, CPU IP could also be a draw given Google and its customers are pushing for TPUs with on-package CPU cores for RL workloads.”
AMD Smart Score
AMD stock has a Smart Score of six out of 10, representing a Neutral rating. This comes from:
- A Strong Buy Analyst Consensus Rating.
- A Bullish Blogger Sentiment.
- A Decreased Hedge Fund Trend of 4 million shares over the past quarter.
- A Sold Shares Insider Transactions rating with $5.5 million of AMD stock sold over the past three months.
- A Neutral Crowd Wisdom.
- A Very Bullish News Sentiment.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Strong Buy, based on 27 Buy and six Hold ratings over the past three months. With that comes an average AMD stock price target of $647.04, representing a potential 26.53% upside for the shares. (See AMD Stock Forecast)
