AMD and Microsoft's AI Partnership Rumors: The Truth Unveiled.

AMD's stock has been volatile following mixed Q1 earnings and rumors of a partnership with Microsoft to fund the company's push into AI processors. However, Microsoft has denied these reports. While AI is expected to drive demand in the semiconductor space, near-term performance may be weak. AMD's gross margins are being pinched, and operating expenses are high, leading to operating income declines. Data center demand remains strong, while PC demand is low. AMD's balance sheet is healthy, and the company plans to repurchase $2.5 billion in shares in 2023. AMD is a long-term buy, but new money should enter in the $70s.