Why AI Stocks Microsoft and AMD Soared Today

AI Basics

what happened

shares of microsoft (MSFT -1.28%) and Advanced Micro Devices (AMD -0.37%) I climbed on Tuesday. His Microsoft partner OpenAI unveiled a powerful new artificial intelligence model, while AMD unveiled a new line of cutting-edge processors.

so what

OpenAI has announced GPT-4, the latest generation large scale language model (LLM) that can be trained on massive amounts of data and used to enhance AI applications. OpenAI used an earlier version of LLM to build and operate ChatGPT, a wildly popular AI bot.

According to OpenAI, GPT-4 is an even more powerful model that can improve accuracy and solve difficult problems. It is also multimodal and can accept both text and image input.

OpenAI trained GPT-4 on Microsoft’s Azure AI infrastructure. The two companies also struck a multi-billion dollar partnership in January. Since then, Microsoft has integrated his OpenAI technology into the Bing search engine and several other products and services.

Meanwhile, AMD has announced its latest generation EPYC Embedded processors. High performance and energy efficient, his 9004 series chips are designed for embedded networking, cloud computing and industrial markets.


Both Microsoft and AMD stand to reap significant benefits from the AI ​​revolution. Microsoft’s Azure cloud infrastructure platform, designed to efficiently power AI workloads, could see a surge in demand for its computing services in the years to come. ChatGPT is the most popular AI chatbot in the world today, so it doesn’t matter that Microsoft is the exclusive cloud provider for OpenAI.

AMD is also likely to enjoy a surge in demand for its highly regarded chips. CEO Lisa Su recognizes that AI is essential to the future of chip makers. She skillfully empowers the semiconductor leader with her AI megatrend, delivering more returns to investors in the process.

Joe Tenebruso has no positions in any of the mentioned stocks. The Motley Fool invests in and recommends Advanced Micro Devices and Microsoft. The Motley Fool’s U.S. headquarters has a disclosure policy.

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