Advanced Micro Devices Inc. (NASDAQ: AMD) shares rose 1.34% to $616.02 at 10:27 a.m. ET Tuesday, strengthening from premarket levels in the first regular trading session after the company announced an agreement to acquire World Labs.
AMD closed Monday at $607.87, down 3.61%. The company announced the transaction after Monday’s closing bell.
AMD agreed to acquire World Labs, a spatial-intelligence and simulation technology company led by AI researcher Dr. Fei-Fei Li, in an all-stock transaction valued at approximately $8.2 billion.
Rosenblatt and Stifel both reiterated Buy ratings Tuesday, focusing on how World Labs could broaden AMD’s AI capabilities, particularly in spatial intelligence and robotics.
Rosenblatt, Stifel See Broader AI Capabilities
Rosenblatt maintained its Buy rating and $700 price target, viewing the transaction in part as an acceleration of technology investment AMD might otherwise have needed to make internally. The firm said World Labs adds AI software, modeling and simulation expertise that could support AMD’s development of broader system-level AI platforms and applications including robotics.
Stifel maintained its Buy rating and $635 price target, emphasizing the transaction’s potential relevance to robotics. The firm said limited real-world training data can constrain the development of general-purpose robots and pointed to World Labs’ Atlas technology as a way to reconstruct physical environments and generate observations for simulated robot sensors. World Labs says Atlas can reconstruct spaces from sparse image inputs and generate RGB and depth data corresponding to what a simulated robot would observe.
Stifel also said World Labs adds spatial and world-model capabilities to an AMD open-model portfolio that has focused on text and video. The firm noted that World Labs remains early in its commercial development and that AMD has not disclosed the transaction’s expected financial or profit-and-loss impact.
World Labs Brings Spatial-Intelligence Research to AMD
The deal is expected to close by the end of 2026, subject to regulatory approvals and customary closing conditions.
World Labs develops spatial-intelligence models that generate, reconstruct and simulate interactive 3D environments from text, image and video inputs, along with technology for robotic learning and simulation. AMD said the research will give it deeper insight into evolving AI workloads as it develops future hardware, software and systems.
After the transaction closes, Li is set to join AMD as executive vice president and chief scientist, reporting to CEO Lisa Su. World Labs and AMD had already worked together on model training and inference optimization using AMD GPUs before the agreement.
Meanwhile, Advanced Micro Devices Tokenized bStocks (AMDB) was down 0.27% over the prior 24 hours at $611.43, according to CoinMarketCap.