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Advanced Micro Devices(NASDAQ: AMD)stock got caught in an epicsell-offlast week as semiconductor chip stocks lost $1 trillion in market capitalization.
AMD stock, in particular, lost 9.6% by the close of the week.
The semiconductor chips giant bounced back this morning, however, with shares rising an even 5% through 11 a.m.
after AMD announced it will invest £2 billion (that's $2.7 billion) inartificial intelligenceresearch in the United Kingdom.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.Continue » Through investments with the Imperial College London and Oriole Networks (a computer networking start-up), AMD intends to boost advanced computing, scientific research, and workforce development across the United Kingdom -- not just in AI, but in quantum computing and other "next-generation computing research," says the company.
Additionally, AMD is partnering withDell Technologies(NYSE: DELL)and the University of Cambridge to work on the latter's Zenith AI supercomputer and Sunrise fusion AI system.
AMD's total investment in these projects could (not necessarilywill) reach $2.7 billion over the next five years, and one goal is to help turn the U.K.
into a "global AI superpower." This goal isn'tentirelyaltruistic, however.
As AMD explains, some of its funding will be used to purchase AMD compute platforms and AMD AI software as well -- so a big part of AMD's goal here is to grow its market share in the U.K.
Not that AMD necessarily needs much help growing.
The company's most recent earnings release showed 38% revenue growth and profits up nearly double -- 95%, year over year.
Still, more growth wouldn't hurt and, indeed, could go a long way toward justifying AMD's 155-times earnings valuation.
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