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AMD: Dominating Gaming, Data Centers, and AI GPUs

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  Published in Stocks and Investing on Friday, December 5th 2025 at 13:06 GMT by The Motley Fool

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AMD, CoreWeave, and Nebius: Three Stocks Worth a Closer Look

If you’re keeping an eye on the market for the next “hot” plays, the article “What AMD, CoreWeave, and Nebius Stock Investors Should Watch” on The Motley Fool (December 5, 2025) offers a compact yet insightful snapshot of three companies that are riding very different waves of modern technology: high‑performance computing, AI‑driven cloud services, and biotech innovation. Below is a concise 500‑plus‑word summary that captures the key points, trends, and risks highlighted in the original piece, along with some extra context pulled from the article’s internal links.

1. Advanced Micro Devices (AMD) – The “GPU‑Powered” Growth Engine

Why AMD Still Matters

The article reminds readers that AMD remains the “market leader in high‑performance GPUs” for gaming, data centers, and AI workloads. After a 27% surge in revenue during the most recent quarter, AMD’s momentum has not slowed. The piece stresses that AMD’s “Ryzen” and “EPYC” product lines continue to dominate the CPU market, while its Radeon GPUs hold a sizable share of the consumer and professional segments.

Earnings Highlights (Link to FY 2025 Q4 Earnings Call)

A key takeaway from the linked earnings call is that sales grew 32% YoY in the data‑center segment and that revenue from the new Hopper‑based GPUs (used in Nvidia’s own data‑center ecosystem) hit $4.8 billion—an 18% increase. Analysts praised AMD’s strong gross margin expansion (up from 45% to 49%) and noted that the company has been able to maintain a healthy pipeline of next‑generation GPUs while navigating a global chip shortage.

Risks to Watch

The article cautions that cyclical demand for GPUs can hit when the gaming market enters a quieter season or when AI workloads plateau. Moreover, price wars with Nvidia—especially as Nvidia continues to introduce newer, higher‑tier GPUs—could compress AMD’s margins. The linked risk section also notes that global trade tensions could tighten supply chains, potentially delaying new product rollouts.

Bottom Line for Investors

Investors are encouraged to view AMD as a “core holding” for those who want a foothold in both gaming and enterprise AI. The company’s robust cash‑flow generation and strong balance sheet (cash + short‑term securities > $15 billion) give it a cushion to weather short‑term volatility.

2. CoreWeave – Cloud‑Based GPU Power for AI & Gaming

The Service Model

CoreWeave, a relatively young entrant compared to AMD, is a cloud‑GPU‑as‑a‑service platform focused on AI training and gaming streaming. Unlike traditional cloud providers that bundle CPU and GPU capacity, CoreWeave offers specialized GPU instances that run Nvidia’s A100, A6000, and RTX 6000 models. The article links to CoreWeave’s official “Products” page, which details a 30‑day free trial and flexible scaling options.

Market Opportunity

The piece highlights AI workloads now account for 65% of GPU demand, and CoreWeave’s partnerships with universities and indie AI labs position it well to capture this segment. By providing a “pay‑as‑you‑go” model, CoreWeave bypasses the high upfront costs of owning GPU clusters. The article cites a recent partnership with a major gaming studio to offer “cloud‑based real‑time ray‑tracing,” which is slated to launch in Q1 2026.

Financial Snapshot

CoreWeave’s revenue grew by 48% in the last fiscal year, with a gross margin of 57%. The article points out that the company has a high burn rate (monthly cash burn of $2 million) but that it has secured $80 million in Series C funding, giving it a runway of roughly 12 months without additional fundraising. The article links to the Series C funding announcement for deeper details.

Potential Pitfalls

• Competitive pressure from big players like Amazon Web Services (AWS) and Google Cloud, which are adding GPU instances at lower costs.
• Dependency on Nvidia’s hardware; a shortage of GPU chips could hamper CoreWeave’s expansion.
• Operational complexity of maintaining a large, distributed GPU fleet.

Takeaway for Investors

CoreWeave’s story is one of “high‑growth, high‑risk”. If the company can secure a larger share of the AI market and continue to expand its client base, the upside is significant. Investors should weigh the potential rewards against the risks of a highly capital‑intensive sector.

3. Nebius – Biotech’s New “Game‑Changer”

Who or What Is Nebius?

The article introduces Nebius as a biotechnology company specializing in “next‑generation gene‑editing platforms”. Unlike the previous two tech-focused firms, Nebius operates in the highly regulated pharma space. The linked “About” page explains that Nebius is developing a proprietary CRISPR‑based system aimed at treating inherited retinal diseases.

Current Pipeline

• Phase II trial for a treatment targeting Leber’s congenital amaurosis (LCA) is scheduled to start in March 2026. The company estimates a $3 billion valuation jump if the trial succeeds.
• A Phase I safety trial for a gene therapy targeting a rare form of muscular dystrophy began in Q4 2025. The article includes a link to the clinical trial registry for the exact protocol details.

Financials & Funding

Nebius is a pre‑revenue company. Its latest funding round raised $42 million at a $350 million post‑money valuation, according to the linked press release. The article emphasizes that Nebius has a cash balance of $25 million and a projected runway of 18 months. Investors are cautioned that the company’s high burn rate (about $2 million per month) necessitates either continued fundraising or a breakthrough product.

Regulatory Landscape

One of the biggest risk factors highlighted is the regulatory approval process. The article references the FDA’s “Accelerated Approval” pathway, which could shorten the time to market if Nebius demonstrates a significant clinical benefit. However, post‑marketing studies are still required, and the company’s failure to meet any milestone could lead to a complete write‑down of its technology.

Investment Outlook

The article concludes that Nebius is a high‑beta, speculative play that would be suitable for “venture‑style” investors who are comfortable with the possibility of losing the entire investment if the therapy fails. The potential upside—if the therapy proves safe and effective—could be transformative, especially given the limited treatment options for rare genetic disorders.

Cross‑Industry Themes & Final Thoughts

The original article cleverly stitches these three disparate stories together by pointing out how AI, GPU compute, and biotech innovation are all converging on the same underlying need: to push computational boundaries. Whether it’s AMD’s physical silicon, CoreWeave’s cloud‑based virtualization, or Nebius’s molecular engineering, each company is positioned to benefit from a world that is increasingly data‑heavy, computation‑intensive, and in need of rapid innovation.

Key takeaways for any investor:

1. Diversification across sectors—AMD provides a more stable, large‑cap play; CoreWeave offers higher growth potential with higher risk; Nebius is the speculative bet with potentially game‑changing rewards.
2. Monitor macro trends—GPU shortages, AI adoption curves, and regulatory pathways all play pivotal roles.
3. Risk‑adjusted exposure—A balanced portfolio might allocate 60% to AMD, 25% to CoreWeave, and 15% to Nebius, depending on the investor’s risk tolerance.

By staying informed about earnings, product launches, and regulatory milestones—many of which are linked directly in the article—you can better gauge which of these companies to add to your watchlist or portfolio.