AMD shares jump 12% due to the strong AI demand, and Samsung Electronics almost surpass $1 trln

New AMD revenue forecasts are expected to be higher due to the bigger demand for data-center chips because major IT companies are increasing investment in IA infrastructure. The share of the company has recently grown to 12%, and during the current year, the general increase is around 65%.

AMD shares increase

According to AMD, the server CPU market will grow at approximately 35% annually, and that can even reach $120 billion in only a 4-year time-frame. Such percentages are way higher than previously forecasted at 18% rate of increase.  

During the first quarter of this year, sales in the data center segment for both types of AMD’s server chips rose to 57%. Also, AMD plans to sell $60 billion worth of AI chips to META during the next five years, and the company got a deal with OpenAI last year. The revenue of the company is growing and even outperforming its major competitor, Nvidia.

Samsung Electronics capitalization

Recently, it was noticed that Samsung Electronics' capitalization surpassed $1 trillion. The market value of the company reached $1.03 trillion in early trading in Seoul. High record closes were noticed in Intel and other AI-related businesses.

Impact of memory shortage on general demand

Due to the global memory shortage, there is a higher demand for high-bandwidth memory. It is expected that the increase in the memory price will negatively impact demand for consumer electronics. For instance, the higher price for the computers will minimize the number of active AMD consumers. That’s why AMD is planning to reduce PC shipments due to the high memory costs.

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