Should Investors Buy AMD as It Takes Aim at Nvidia With Its Latest Acquisition?

▤ Summary

Advanced Micro Devices (AMD -1.07%) made a big move on the acquisition front, agreeing to acquire ZT Systems. Full systems allow for faster deployments, which is important as cloud computing and other companies race to buildout their AI infrastructures. Silo AI has developed large language models (LLMs) that have been trained at scale on AMD Instinct accelerators. Nvidia is still the preferred provider of AI chips and systems, in large part because developers learned to program GPUs using its CUDA software platform. I think AMDs prospects in the AI data center space just got a lot brighter with this acquisition, and as such, I would be a buyer of the stock around current levels.

▦ Linked Companies

NVIDIA Corporation

$1B+

AMD

$25M to $50M