Shares of Advanced Micro Devices (NASDAQ: AMD) have traded up 51% over the last six months, but the company is poised for accelerated growth over the next year. The artificial intelligence (AI) workloads in data centers are shifting from training to inference, where AI can instantly generate answers, images, and video from user input.
AMD has designed its upcoming chips specifically for AI inference, which could drive significant growth for the company.
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AI inference can increase compute costs if the chips don’t have enough memory to handle the increased data processing. But this is where AMD may have an advantage. It designed its new Venice EPYC processors and MI455 graphics processing units (GPUs) with double the memory bandwidth specifically for the inference market.
AMD’s design choices are already winning over customers. Luma AI runs most of its inference workloads on AMD chips, and it’s expected to expand its partnership with AMD in 2026. AMD is also a key partner of OpenAI, the developer of ChatGPT, which will use its MI455 GPUs in a large-scale deployment starting in the second half of this year.
These are early indicators that AMD could see substantial growth in the next few years as AI inference becomes the predominant workload in data centers. Wall Street analysts expect AMD’s earnings per share to jump 65% this year.
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