Advanced Micro Devices ( AMD Quick Quote AMD - Free Report) recently announced that its Versal AI Core Series and AMD AI Engine technology have been selected by Canon for running operations in its Free Viewpoint Video System.
The Canon Free Viewpoint Video system consists of a ring of high-resolution cameras, which are utilized in stadiums and arenas. The video system helps viewers to watch live sports events from varied angles. The Canon View Free Viewpoint System is expected to be deployed at various professional basketball arenas in the United States and other sports venues globally.
Canon will utilize AMD's AI processing technology to revolutionize the live sports broadcasting experience. AMD's Versal AI Core enables high performance and ultra-low latency, which significantly reduces image processing time, thereby allowing speeding up live replays in near real-time compared to several minutes with other traditional architectures.
Versal AI CORE is a Xilinx product that delivers AI inference and wireless acceleration with integrated AI engines. This product enables AMD to foray further into the AI space.
As such, the recent partnership with Canon highlights how beneficial the Xilinx acquisition has been for AMD as it has been increasing the company's customer base.
AMD Ventures Into AI Space to Drive Price Performance
AMD's shares have slumped 43.9% compared with the Zacks
Electronics - Semiconductors industry's and the Zacks Computer and Technology sector's decline of 29.3% and 24.5%, respectively, in the year-to-date period.
The decline was primarily due to the global supply chain challenges that have affected the semiconductor industry, the ongoing Russia-Ukraine war and rising inflation.
Stiff competition from peers like
NVIDIA ( NVDA Quick Quote NVDA - Free Report) remains a concern.
NVIDIA has been benefiting from the rapid proliferation of AI. The company has been expanding its base in untapped markets like climate science, energy research, space exploration and digital biology.
Nvidia has recently teamed up with Hewlett Packard Enterprise to bring AI software services to the cloud. NVIDIA AI enterprise is now available in Hewlett Packard Greenlake in select countries.
NVIDIA shares have fallen 45.7% compared with the Zacks
Semiconductor – General industry's decline of 35.4% on a year-to-date basis.
However, AMD's top line is expected to benefit from its acquisition of Xilinx.
Xilinx significantly expands AMD's technology and product portfolio and adds multiple high-margin long-term revenue streams across a new set of markets such as AI and AR.
The recent buyout of Xilinx has helped AMD collaborate with
Meta Platforms ( META Quick Quote META - Free Report) to enter the Metaverse.
AMD has become Meta's ecosystem partner, and AMD's radio chip Xilinx Zynq UltraScale RFSoC will be utilized to develop a Metaverse-ready radio access unit.
The company is constantly enhancing the performance of its Ryzen processors to help address the rising demand for its Ryzen processors, courtesy of the increasing proliferation of AI and Machine Learning (ML) in industries like cloud, gaming and data centers.
AMD anticipates revenues to improve as it forays into the AI market. This, in turn, will impact shareholders' wealth positively in the long run.
AMD currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.