Amazon (AMZN) has recently scooped up 822,234 shares of Advanced Micro Devices (AMD), worth $84.4 million. This move signals AMZN’s big plans in the AI and cloud computing space, as AMD’s data center chips continue to gain traction.
Why AMD?
Amazon’s investment comes at a time when AI chip demand is rising. AMD recently reported Q1 revenue of $7.44 billion, beating analyst estimates of $7.12 billion. Also, the company’s Data Center segment surged 57% year-over-year.
As AI workloads grow, Amazon is positioning itself to use AMD’s advanced processors for its AWS cloud services. Also, AMZN could be looking to diversify its AI hardware options beyond just Nvidia (NVDA).
What Are the Best AI Stocks to Buy Now?
AI stocks continue to dominate the market as companies invest heavily in AI to drive innovation and growth. According to the TipRanks Stock Comparison tool, Microsoft (MSFT), Meta Platforms (META), Alphabet (GOOGL), Micron (MU), AMZN, and Nvidia are all Strong Buys.
