Aanchal Sugandh

Sun, Jun 22, 2025, 5:00 AM3 min read

Over the past decade, Advanced Micro Devices (AMD) has thrived, rewriting its legacy in the fiercely competitive semiconductor arena. The company has evolved from an industry underdog to a headline name in innovation, particularly in artificial intelligence (AI).

Adding another feather to its cap, in early June, AMD announced it has brought onboard the team behind Untether AI. These engineers, known for building AI inference chips that outperform rivals in both speed and energy efficiency, will now strengthen AMD’s skills in enterprise data centers and edge computing.

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Far more than just a hiring spree, the strategic agreement brings in deep expertise in AI hardware, software, compiler engineering, kernel development, and system-on-chip design, all critical in the fast-moving AI race.

The move is no isolated bet. Just weeks ago, AMD acquired silicon photonics firm Enosemi to scale its co-packaging capabilities, and days later, it snapped up open-source software player Brium. So, let us now examine whether the latest move strengthens AMD’s position as a compelling investment opportunity.

Advanced Micro Devices (AMD), headquartered in Santa Clara, California, holds a market cap of $205.6 billion and leads the charge in high-performance computing. The company delivers a powerful mix of CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software capabilities to build cutting-edge platforms that support cloud infrastructure, edge computing, and end-user systems.

Over the past three months, AMD has been on an upward march, posting gains of 22.5%. In just the last five trading days, the stock has leapt another 4.7%, a sharp spike that points to fresh tailwinds lifting the company higher.

On May 6, Advanced Micro Devices lifted the curtain on its Q1 2025 earnings, and its performance beat analyst expectations. The chipmaker reported revenue of $7.44 billion, rising 35.9% year over year and exceeding Wall Street’s forecast of $7.12 billion.

At the heart of this impressive run was the data center segment, which delivered $3.7 billion in revenue, marking a 57% surge from the same period last year. Other divisions joined the rally too. The client and gaming business generated $2.9 billion combined. While the client unit saw a dramatic upswing of 68%, bringing in $2.3 billion, the gaming segment faced continued headwinds, falling 30% to $647 million.