Advanced Micro Devices (AMD +4.83%) stock got caught in an epic sell-off last week as semiconductor chip stocks lost $1 trillion in market capitalization. AMD stock, in particular, lost 9.6% by the close of the week.
The semiconductor chips giant bounced back this morning, however, with shares rising an even 5% through 11 a.m. after AMD announced it will invest £2 billion (that's $2.7 billion) in artificial intelligence research in the United Kingdom.
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AMD + U.K. = what?
Through investments with the Imperial College London and Oriole Networks (a computer networking start-up), AMD intends to boost advanced computing, scientific research, and workforce development across the United Kingdom -- not just in AI, but in quantum computing and other "next-generation computing research," says the company. Additionally, AMD is partnering with Dell Technologies (DELL +1.31%) and the University of Cambridge to work on the latter's Zenith AI supercomputer and Sunrise fusion AI system.
AMD's total investment in these projects could (not necessarily will) reach $2.7 billion over the next five years, and one goal is to help turn the U.K. into a "global AI superpower."
This goal isn't entirely altruistic, however. As AMD explains, some of its funding will be used to purchase AMD compute platforms and AMD AI software as well -- so a big part of AMD's goal here is to grow its market share in the U.K.
NASDAQ: AMD
Key Data Points
What's next for AMD?
Not that AMD necessarily needs much help growing. The company's most recent earnings release showed 38% revenue growth and profits up nearly double -- 95%, year over year.
Still, more growth wouldn't hurt and, indeed, could go a long way toward justifying AMD's 155-times earnings valuation. If AMD can goose its growth rate for just $500 million-ish per year, it will be money well spent.
