Earlier in January, Tata Consultancy Services announced a collaboration with AMD to co-develop industry-specific AI and GenAI solutions that modernize hybrid cloud, edge, and digital workplace environments using AMD EPYC CPUs, Instinct GPUs, Ryzen CPUs, and embedded SoCs.
This partnership is particularly important because TCS plans to upskill large numbers of its engineers on AMD’s AI hardware and software stack, potentially deepening AMD’s role at the heart of enterprise AI rollouts across sectors like life sciences, manufacturing, and financial services.
We’ll now examine how this broad AI collaboration with TCS could influence AMD’s investment narrative built around data center and AI growth.
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To own AMD, you need to believe its AI and data center roadmap can justify a premium valuation while it executes in a fiercely competitive market. The TCS collaboration reinforces that thesis by putting AMD hardware at the core of large enterprise AI deployments, but it does not fundamentally change the near term catalyst around data center AI ramps or the key risk of high expectations colliding with execution, competition and geopolitics.
Among recent announcements, the launch of Ryzen AI Embedded processors stands out alongside the TCS partnership. Together, they show AMD pushing AI from cloud to edge, from data centers to vehicles, factories and robotics. For investors focused on catalysts, this broadens the potential AI revenue base beyond hyperscalers alone, but also adds complexity and execution risk across more end markets and product lines.
Yet against all this optimism, one risk investors should be aware of is how new trade and tariff actions could suddenly reshape AMD’s AI chip economics and export access…
Read the full narrative on Advanced Micro Devices (it’s free!)
Advanced Micro Devices’ narrative projects $46.2 billion revenue and $9.0 billion earnings by 2028. This requires 18.5% yearly revenue growth and a $6.8 billion earnings increase from $2.2 billion today.
Uncover how Advanced Micro Devices’ forecasts yield a $283.57 fair value, a 22% upside to its current price.
AMD 1-Year Stock Price Chart
Some of the most optimistic analysts were already penciling in US$59.8 billion in revenue and US$12.5 billion in earnings by 2028, so this kind of news could either strengthen that AI acceleration story or highlight how fragile those assumptions are if competition or export rules shift direction.
Explore 92 other fair value estimates on Advanced Micro Devices – why the stock might be worth 35% less than the current price!
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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.
Companies discussed in this article include AMD.
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