Advanced Micro Devices (AMD) stock was up on Friday alongside news of an investment in artificial intelligence (AI) startup Somite.ai. AMD Ventures has made a strategic investment in the company following its $47 million Series A closing in May. This will result in the company using AMD Instinct GPUs to power its capsule-based data generation platform.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Somite.ai is dedicated to building large-scale foundation models focused on transforming cell therapy. The company believes that doing so will result in the acceleration of development for novel cell therapies. Doing so would reduce timelines and benefit millions of patients. Somite.ai claimed its platform “generates differentiation data at approximately one-thousandth the cost of traditional methods, unlocking unprecedented scale and precision for training powerful predictive models.”
Sagi Paz, Head of AMD Ventures, spoke about the strategic investment in Somite.ai. He said, “Biology is experiencing a computational revolution similar to language and vision. Somite is clearly leading the way, and AMD Instinct GPUs are built for the demands of their ambitious models. We are excited to collaborate with a company converting cutting-edge compute capabilities into meaningful therapies.”
AMD Stock Movement Today
AMD stock was up 1.82% on Friday, extending a 38% year-to-date and 5.63% 12-month rally. Other news that moved AMD shares today was Nvidia’s (NVDA) order to halt H20 AI chip production due to a Chinese crackdown connected to security concerns. This comes after President Donald Trump cleared the sale of custom chips to China, with the caveat that 15% of sales go to the U.S. government.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 24 Buy and 11 Hold ratings over the past three months. With that comes an average AMD stock price target of $183.45, representing a potential 9.79% upside for the shares.
