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May 7 - Amazon (NASDAQ:AMZN) has purchased 822,234 shares of Advanced Micro Devices (NASDAQ:AMD), worth about $84.4 million.
The move comes after AMD reported first?quarter revenue of $7.44 billion, topping the $7.12 billion consensus, driven by a 57% year?over?year surge in its Data Center segment.
By boosting its stake in AMD, Amazon is clearly aiming to diversify its AI?hardware suppliers for AWS. The cloud giant already relies heavily on Nvidia (NASDAQ:NVDA) chips, and adding more AMD capacity could help mitigate supply constraints and strengthen its negotiating position.
Analysts say the purchase underscores a broader industry shift as cloud providers race to secure the specialized processors needed for large?scale AI workloads. Locking in multiple chip partners is essential to meet the exploding demand for AI services, said a Wedbush Securities analyst.
AMD's strong guidance for data?center growth and recent design wins with other major cloud platforms have made its shares an attractive target. Amazon's investment not only signals confidence in AMD's technology but also reflects the strategic importance of AI?optimized silicon in the battle for cloud?computing dominance.
This article first appeared on GuruFocus.