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AMD Stock: Advanced Micro Devices Attacks Nvidia With New Acquisition

AMD Stock: Advanced Micro Devices Attacks Nvidia With New Acquisition

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advanced micro devices (On NASDAQ:AMD) made an announcement today that looks set to catapult the company even further into the AI ​​debate. Specifically, the semiconductor maker It was announced agreed to buy Silo AI It bought it for $665 million to accelerate its vision of creating new software and services to complement its AI chips and hardware.

Experts call this move a direct insult to the industry leader Nvidia (On NASDAQ:NVDA) has dominated the high-performance semiconductor space in recent years. Through Silo AI, Advanced Micro Devices will have access to people with solid AI skills and experience delivering AI solutions to high-end customers. Investors clearly like this, and shares of AMD stock were almost 3% higher in early afternoon trading.

AMD Shares Rise on AI Acquisition Announcement

Nvidia’s market share lead remains intact, but AMD is among the key competitors looking to build a growing customer base in this space.

The company’s announcement of the Silo AI acquisition should help AMD challenge Nvidia on the innovation front. For there to be a meaningful long-term upside for end users, this competition must be healthy and stimulating. In many ways, it could make both players better off in the long run (and perhaps that’s a positive for Nvidia investors). It’s worth noting that both stocks are higher today.

Ultimately, I think this announcement is worth considering as AMD’s commitment to continue investing heavily in AI chips. It’s more of a statement to investors than something that will move the needle in the near term. For now, investors seem happy with this show of intent and the potential for Silo AI to take AMD to the next level.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The views expressed in this article are those of the author subject to InvestorPlace.com Publishing Guidelines.

As of the date of publication, the responsible editor does not have (directly or indirectly) any positions in the securities mentioned in this article.

Chris MacDonald’s love of investing led him to earn an MBA in Finance and hold various management roles in corporate finance and venture capital for the past 15 years. His previous experience as a financial analyst, combined with his passion for finding undervalued growth opportunities, contributes to his conservative, long-term investment perspective.