Advanced Micro Devices (AMD) is becoming a formidable force in the world of fierce competition for artificial intelligence chips. For a company that a few years ago used to be far behind Intel in the microprocessor category, AMD has done a continuous job of reinventing itself. With Intel being left behind in terms of developing AI chips, AMD grabbed its chance to expand. Finally becoming a true competitor to Nvidia, which at present, is the leader of producing AI hardware.

This shift can be witnessed in the most recent upgrade to its Relative Strength (RS) Rating by AMD, which is now 78 as compared to the previously rated value of 65. The RS Rating follows the performance of a stock in the last year in relation to those of other stocks. The majority of the best-performing stocks will normally have an RS Rating of 80 plus before they make their largest price increases. AMD is only two points behind that mark, and that indicates a high potential going up should the trend remain the same.

Other performance indicators are also good at the company. It has an EPS Rating of 97 out of 99, and this implies that its earnings growth is top in the market. Its Composite Rating of 95 marks strength in the areas of earnings, stock price performance and other important indicators. In the meantime, an A-grade in Accumulation indicates that big players, such as mutual funds and ETFs, are gathering it.

Recent financial numbers support the bullish wave. In the previous quarter, AMD had profits of 96 cents each. That was a gain of 55% compared to the previous year. Its revenue increased by 36% to reach $7.44 billion dollars. The profits are in the form of a robust trend as the preceding quarters also represented a rise in profit and sales by a multiple of a hundred. Such stable performance plays a significant role in achieving the interest of analysts as well as investors.

The AMD stock has exerted a remarkable run in the market. Its share price has almost doubled (up by almost 90%) since early April to approximately $144 per share. In the last eight trading days, it has recorded a close above the previous, a factor that is an indication of investor confidence. As more investors take notice, the company has quality fundamentals and chips in its AI are in high demand, which means no longer having to play catch-up. It is emerging to be one of the key players in a fast-growing industry that is high stakes.

Source: Chipmaker Advanced Micro Devices (AMD) for decades played second banana behind microprocessor giant Intel. Intel (INTC) fell behind in the race to make artificial intelligence chips, and AMD moved on to become a rival to AI-chip king Nvidia (NVDA) in that emerging market.