In a stellar 2023 display, AMD’s (NASDAQ: AMD) stock has surged by triple digits, marking a significant contribution to the S&P 500‘s remarkable climb to nearly two-year highs.
Alongside the influential Magnificent Seven stocks, AMD is among the best-performing stocks that propelled the index upward amid the ongoing artificial intelligence (AI) boom.
With a staggering 115% year-to-date rise, the semiconductor giant’s shares surged to a new 52-week high of $139.89 on December 12. As a result, the stock is now on track for its best year since 2019, when it posted an impressive gain of almost 150%.
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What’s driving AMD’s ascent this year?
From a broader perspective, AMD’s impressive stock market exhibit in 2023 can be attributed to the company’s coveted position in the ongoing frenzy around generative AI solutions such as ChatGPT.
Like Nvidia (NASDAQ: NVDA), AMD is one of the few chipmakers that can produce high-end graphics processing units (GPUs) needed to train and deploy the much-discussed large language models (LLMs).
While this market is very much dominated by Nvidia, AMD caught further investor attention when it introduced a brand new AI chip series earlier this month, describing it as “the most complex” in the industry.
The new chip, MI300X, can rival Nvidia’s most powerful offering, H100, AMD claimed. As such, the chipmaker thinks MI300X will become the fastest product to hit $1 billion in sales, a goal it expects to reach by mid-2024.
During the same live-streamed event on December 6, AMD’s CEO Lisa Su said there was a $45 billion market for its data center AI chips this year. This marked a significant hike from AMD’s June forecast of $30 billion.
Since this potentially game-changing announcement, AMD’s shares surged nearly 18% in less than a week, propelling them to a fresh 52-week high.
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