2024-07-12 12:55:30 ET
Summary
- Advanced Micro Devices, Inc.'s acquisition of Silo AI is as strategic as they come.
- The gap with Nvidia won't close, but it'll eventually bring AMD that much closer to the competitor with a +10X market cap.
- It could also mean the beginning of a new stream of income from AI software deployments, bringing the company closer to its dream of being an end-to-end AI solutions provider.
- I'm recommending a Buy, but with the caution that the stock is likely to go through a quasi-cyclical growth pattern.
When you’re in second or third place in a race and the front-runners just seem so far away, there are only two ways to close the gap. The slow way is to gradually build up your speed until you can exceed that of the runners ahead. The fast way is to get a booster shot of something that will propel you forward, toward them and hopefully beyond. The first way is usually more sustainable, but the second way is far more efficient. Even though your “booster” may or may not work, when you’re playing a high-stakes game against masters of their craft, it’s the only long shot that could work in your favor. Besides, if it does work, it can become as sustainable as the organic way to the front of the race....
Read the full article on Seeking Alpha
For further details see:
AMD: Long-Term Implications Of The Silo AI Acquisition