Advanced Micro Devices (AMD) and Hewlett Packard Enterprise (HPE) stocks were on the rise Tuesday after the companies announced a deal. HPE revealed that it has reached an agreement with AMD to utilize the latter’s Helios AI rack-scale architecture to speed up the deployment of at-scale artificial intelligence (AI) training and inferencing for cloud service providers.
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HPE noted that it will combine AMD’s Helios system with Broadcom’s (AVGO) Tomahawk 6 networking chip, which will allow for traffic from trillion-parameter model training, high inference throughput, and massive model sizes. With this, the HPE Services team can support customers with flexibility, interoperability, energy efficiency, and faster deployments as the demand for AI continues to increase.
AMD CEO Lisa Su noted, “HPE has been an exceptional long-term partner to AMD, working with us to redefine what is possible in high-performance computing. With ‘Helios’, we’re taking that collaboration further, bringing together the full stack of AMD compute technologies and HPE’s system innovation to deliver an open, rack-scale AI platform that drives new levels of efficiency, scalability, and breakthrough performance for our customers in the AI era.”
AMD & HPE Stocks Rally Today
AMD stock was up 1.88% on Tuesday, extending an 81.94% rally year-to-date. The shares have also climbed 54.78% over the past 12 months.
Turning to HPE, the company’s stock jumped 0.73% this morning, building on a 5.69% year-to-date gain. The stock has also increased 3% over the past 12 months.
AMD vs. HPE: Which Stock Do Analysts Prefer?
Turning to the TipRanks’ stock comparison tool, traders can see which of these two stocks analysts favor. AMD and HPE both have a consensus Moderate Buy rating, showing similar confidence in the two stocks from analysts. However, AMD stock sports a slightly higher upside potential at 26.95%, compared to a possible 18.74% upside for HPE shares.
