Recent developments in the AI chip market highlight significant advancements as companies rapidly push technological boundaries. AMD reported record annual revenue for 2024, largely driven by increased adoption of its EPYC processors and Instinct accelerators, with substantial growth seen in the Data Center segment. AMD continues to bolster its AI capabilities through strategic partnerships with companies like IBM and Vultr, aiming to enhance AI infrastructure for generative AI and HPC applications. Additionally, AMD has expanded its AI-focused product offerings across various sectors, including consumer electronics and high-performance computing (HPC), demonstrating its commitment to driving innovation in AI technology. These efforts underscore the competitive dynamics within the AI chip industry, as companies seek to capitalize on growing demand for high-performance computing solutions.

• Advanced Micro Devices last closed at $119.50 up 4.6%.

Elsewhere in the market, Infineon Technologies was a notable mover up 10.4% and ending the day at €34.50. This week, the company reported a significant decline in first-quarter earnings and sales compared to the previous year. In the meantime, Marvell Technology lagged, down 3.4% to end the day at $109.69.

AMD's growth potential is supported by its EPYC and MI300X products in the data center sector. Explore the full narrative to understand AMD's strategic initiatives and market positioning.

For a comprehensive understanding of the AI Chips investment theme, revisit our Market Insights article on the disruptive impact of DeepSeek's R1 model, which explores the challenges and opportunities it presents for investors and the broader AI ecosystem.

Best AI Chip Stocks

• NVIDIA finished trading at $118.65 up 1.7%.
• QUALCOMM closed at $173.04 up 1.6%.
• Intel finished trading at $19.29 down 0.5%, not far from its 52-week low.

Key Takeaways

• Unlock more gems! Our AI Chip Stocks screener has unearthed 48 more companies like Will Semiconductor, TongweiLtd and Lasertec for you to explore.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Sources:

• Simply Wall St
• "AMD Reports Fourth Quarter and Full Year 2024 Financial Results" from Advanced Micro Devices, Inc. on GlobeNewswire (published 04 February 2025)

Companies discussed in this article include XTRA:IFX NasdaqGS:AMD NasdaqGS:NVDA NasdaqGS:QCOM NasdaqGS:INTC and NasdaqGS:MRVL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com