AMD Stock Gains Momentum from Strategic AI Partnership

Advanced Micro Devices (AMD) shares climbed nearly 2% following the announcement of an expanded strategic alliance with enterprise AI specialist Cohere. This move is seen as a direct effort by AMD to carve out new revenue streams in the intensely competitive artificial intelligence chip market. The partnership raises questions about whether it can sufficiently counterbalance recent challenges the company has faced.

Despite the positive market reaction to the Cohere news, AMD continues to navigate a complex landscape. The company reported record second-quarter 2025 revenue of $7.7 billion, representing a significant 32% year-over-year increase. However, this strong performance is tempered by the impact of US export restrictions on AMD’s Instinct MI308 chips to China. These restrictions have resulted in an accumulation of $800 million in inventory,... Read more...