Advanced Micro Devices (AMD) and International Business Machines (IBM) have teamed up to deploy AMD Instinct MI300X accelerators on the IBM Cloud. This partnership is aimed at improving the performance of AI models and high-performance computing (HPC) applications for businesses. Following the news, IBM and AMD stocks gained 1.5% and 3%, respectively, on Monday.
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Investors should note that the MI300X accelerators, with their 192GB of high-bandwidth memory, are designed to handle AI workloads, including large language model inference.
Importantly, the accelerators will be integrated into IBM’s WatsonX, an AI and data platform, in the first half of 2025. The partnership will give customers the tools to test their AI models using real-world data.
Tech Giants Adopt AMD’s MI300X Accelerators
The demand for AMD’s Instinct MI300X accelerators has been strong, driven by the rapid growth of AI and advanced computing needs. Since their launch in December 2023, these accelerators have attracted significant interest from tech giants, resulting in several partnerships.
Earlier this year, Oracle (ORCL) and Microsoft (MSFT) partnered with AMD to deploy the Instinct MI300X accelerators into their cloud infrastructures. Also, Dell (DELL) disclosed plans to integrate these accelerators into its server solutions.
As AI continues to transform industries, such strategic partnerships are expected to drive innovation and growth.
Is AMD a Good Stock to Buy?
Turning to Wall Street, AMD has a Strong Buy consensus rating based on 26 Buys and seven Holds assigned in the last three months. At $187.04, the average AMD price target implies a 34.63% upside potential. Shares of the company have declined about 6% year-to-date.
Is IBM a Good Stock to Buy Now?
Overall, IBM has a Hold consensus rating based on five Buys, seven Holds, and two Sells assigned in the last three months. At $227.38, the average IBM price target implies a 9.27% upside potential. Shares of the company have gained about 32% year-to-date.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
