AMD's shares experienced a 4.8% increase on Thursday, following the endorsement of the firm's artificial intelligence (AI) advancements by Microsoft Corp. (NASDAQ:MSFT)'s technology chief.
Per a CNBC report, this praise comes amid a surge in interest in large language models, which necessitate substantial processing prowess.
Kevin Scott, Microsoft's chief technology officer, said at the Code conference in Dana Point, California, that AMD is developing GPU offerings that are becoming progressively more enticing and are expected to play a growing role in the market in the years ahead.
Nvidia (NASDAQ:NVDA), a competitor in the AI space, has been a primary benefactor of this trend, with its graphics processing units (GPUs) handling a significant portion of these intensive workloads.
Despite this, AMD (NASDAQ:AMD) has made notable strides in the sector. In June, the company announced plans to start sampling its specially designed AI GPUs, the MI300X chip, with clients in the third quarter.
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Chart: AMD Shares Post Strongest 1-Day Increase Since Early June
At the 2023 Code Conference, AMD CEO Lisa Su highlighted the transformative potential of AI.
"If you think about the technology trends that we've seen over the last 10, 20 years ... AI is 10 times, 100 times more than that in terms of how it's impacting everything that we do."
Year-to-date, Nvidia's shares have nearly tripled while AMD's stock has increased by approximately 60%.
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