Why Advanced Micro Devices Stock Bounced Back Today

AMD plans to invest £2 billion to grow Britain's AI and quantum industries over five years.

Research funded by the investment will use AMD chips and software, boosting AMD sales.

Advanced Micro Devices (NASDAQ: AMD) 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.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

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 (NYSE: DELL) 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.