Wedbush research director Matthew Bryson highlights that the AI sector is pivoting toward monetization through inference applications. "Over the past three to four months, we've observed marked improvements in inference capabilities," Bryson noted, emphasizing that these advancements—which directly generate revenue for cloud providers and model developers—represent a crucial industry milestone.
Bryson expressed cautious optimism about Advanced Micro Devices (AMD.US) growth prospects. While AMD has historically met performance targets, execution timing remains a key concern across the AI landscape. "My primary reservation is that AI is exceptionally difficult to master," Bryson stated, citing examples like AMD's MI250 accelerator, which faced slower-than-expected production ramp-up, and NVIDIA's Blackwell GPU, which encountered performance transition challenges.
Addressing concerns about debt financing in AI infrastructure investments, Bryson clarified that debt only becomes problematic when companies fail to achieve sufficient revenue and profitability. He observed significant shifts in the AI sector in recent months: "We're now witnessing AI commercialization—precisely the concern we had earlier. Twelve months ago, if asked about revenue sources, we only saw model development with no clear monetization. Today, we're seeing applications."
Regarding the AMD-NVIDIA competition, Bryson suggested AMD is best positioned as the "credible second supplier" in AI chips. With AMD trading at ~50x forward earnings versus NVIDIA's 33x, he concluded that AMD could achieve rapid growth if it delivers on its 35% growth target and double-digit market share goals.
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