Advanced Micro Devices (AMD) stock was on the move Monday alongside a report from the YouTube channel High Yield that the company will change its die-to-die technology with the release of Zen 6. AMD hasn’t updated its die-to-die technology since Zen 2, which launched in 2019, meaning there’s been plenty of time for it to develop improvements.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
According to the latest reports, AMD will switch away from SERDES PHY in favor of a new approach that utilizes a large collection of wires. This makes sense, as AMD has joined other CPU and GPU makers with its focus on artificial intelligence (AI) applications. Unfortunately, SERDES PHY isn’t incredibly efficient for Neural Processing Units (NPUs), a new type of processor designed with AI use in mind. Considering the ongoing increased demand for AI services, it’s clear why AMD would want to make its die-to-die technology better suited to these applications.
The newest reports also claim that AMD has already started to introduce this technology ahead of its Zen 6 launch. They point to its Strix Halo APUs, which adopt a field of tiny pads in place of the SERDES PHY configuration. This allows for lower power and latency requirements while increasing bandwidth.
AMD Stock Movement Today
AMD stock was up 2.09% on Monday, extending a 34.79% year-to-date rally. However, the shares were still down 2.82% over the past 12 months. While the company has benefited from the AI boom, it still has tough competition in the space from rivals Nvidia (NVDA) and Intel (INTC).
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 21 Buy and 13 Hold ratings over the past three months. With that comes an average AMD stock price target of $187.73, representing a potential 15.32% upside for the shares.
