Prediction: AMD Stock Will Skyrocket After Aug. 4 Due to This Massive News

This has been an astonishing twelvemonth for Advanced Micro Devices (NASDAQ: AMD) investors truthful far, arsenic shares of the semiconductor specializer person jumped by an awesome 144%.

This unthinkable rally successful AMD banal is good deserved, arsenic the institution is gradually becoming much influential successful the artificial quality (AI) spot market. The bully quality for investors is that AMD's rally could get a bully changeable successful the limb erstwhile the institution releases its second-quarter results aft the marketplace closes connected Aug. 4, pursuing a caller development.

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AMD has conscionable scored a large lawsuit for its rack-scale AI server level

It has been conscionable implicit a twelvemonth since AMD announced that it volition connection a next-generation AI server rack, known arsenic Helios, to hyperscalers and AI companies. This rack-scale strategy integrates the spot designer's information halfway graphics processing units (GPUs), Epyc server processors, Pensando networking chips, and tremendous amounts of high-bandwidth representation (HBM) to rapidly process AI workloads successful information centers.

AMD has already landed a large hyperscaler successful the signifier of Meta Platforms to deploy Helios. And now, the spot decorator has conscionable announced that Microsoft volition besides deploy the Helios rack-scale servers successful its Azure information centers "to powerfulness frontier exemplary AI inference for Microsoft, its AI customers and enactment Azure AI services."

Additionally, Microsoft volition usage 2 further Epyc server processors from AMD and summation adoption of Pensando chips to heighten its Azure networking services. AMD notes that it volition commencement shipping Helios to Microsoft and different customers successful the 2nd fractional of 2026.

This is large quality for AMD investors up of its Q2 net study adjacent month. The AI server marketplace is anticipated to turn by astir 6x betwixt 2024 and 2030, generating $838 cardinal successful gross by the extremity of the decade. AMD tin seizure a larger stock of this lucrative abstraction by offering rack-scale systems that starring server manufacturers tin deploy.

Moreover, AMD's concern with Microsoft could assistance it present stronger-than-expected results connected Aug. 4.

AMD's guidance could transcend expectations

AMD expects a 46% year-over-year summation successful Q2 gross to $11.2 billion. Analysts, however, expect slower year-over-year gross maturation of 35% successful Q3 to $12.45 billion. The institution could easy transcend that estimation since it is poised to statesman income of the Helios rack-scale systems successful the 2nd fractional of 2026.