Key Stats for AMD Stock
- Price change for AMD stock in last 6 months: 210%
- $AMD Stock Price as of Sep. 28: $608
- 52-Week High: $639
- $AMD Stock Price Target: $619
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What Happened?
AMD (NASDAQ: AMD) said on Monday it will buy World Labs for $8.2 billion.
The San Francisco AI lab was founded by Fei-Fei Li, a former Stanford professor who also led AI research at Google.
AMD will pay entirely in stock. It had already invested in World Labs before this deal.
Li will join AMD as chief scientist and an executive vice president. World Labs will stay separate from AMD’s chip business until the deal closes.
This is AMD’s second-largest deal ever. Only the roughly $50 billion Xilinx purchase in 2022 was bigger.
That alone puts AMD stock in the spotlight.
World Labs builds “world models.” These AI systems create 3D environments.
Earlier this year, Li and AMD CEO Lisa Su showed a model called Marble turning a few images into a 3D scene.
The goal is to help build robots and other physical AI. Li said robots and vehicles can learn inside digital worlds before entering the real one, which makes them safer.
The lab’s research also helps AMD plan what its AI chips will need to handle years from now.
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What the Market Is Telling Us About AMD Stock
The deal shows how hard big tech is fighting for AI talent.
- OpenAI paid about $6.4 billion for Jony Ive’s startup io.
- Nvidia spent a combined $33 billion on Groq and Hugging Face.
- Meta paid $14 billion for a stake in Scale AI.
AMD is chasing Nvidia in AI chips, and its core business gives it room to make this bet.
In Q2, revenue jumped 50% to a record $11.5 billion. Data Center sales more than doubled to $6.7 billion and now make up 58% of revenue.
AMD expects about $13 billion in Q3 revenue.
There’s a trade-off for AMD stockholders. Because AMD is paying in stock, current shareholders will own a smaller slice of the company.
Still, the move fits AMD’s push into physical AI.
It already launched the Kria AI Robotics Platform for this market.
AMD stock investors will want to see World Labs research show up in future chips.
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How Much Upside Does AMD Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
