What's Going On With AMD Stock Thursday?

Advanced Micro Devices, Inc AMD stock is trading higher Thursday after analyst Ming-Chi Kuo proclaimed a "rapid growth" in the company's future revenue.

The analyst's latest survey indicates that AMD's AI chip shipments for 2024 (mainly the MI300A) will be about 10% of Nvidia Corp's NVDA (CoWoS-based).

Also Read: AMD's Near-Term Pullback a Buying Opportunity with Strong Revenue Projections in AI: Analyst

Microsoft Corp MSFT is the largest customer for AMD's AI chips in 2024 (with over 50% shipped to Microsoft), followed by Amazon.Com Inc AMZN. 

Meta Platforms Inc META and Alphabet Inc GOOG GOOGL Google are currently testing AMD's AI chips, with Meta being more likely to be the next CSP customer for AMD's AI chips.

AMD's primary target market for its AI chips is CSPs, as CSPs have superior software capabilities that can address AMD's software weakness.

In 2025, CSPs will likely be the main customers for AMD's AI chips. 

If the cooperation between Microsoft and AMD holds good, and AMD wins orders from Meta and Google, AMD's AI chip shipments will significantly reach 30% or more of Nvidia's (CoWoS-based) in 2025.

Price Action: AMD shares traded higher by 1.99% at $110.46 on the last check Thursday.