Categories Earnings, Technology

AMD stock gains 8% on partnership with Amazon

Semiconductor giant Advanced Micro Devices, Inc (AMD) on Tuesday announced at its Next Horizon event being held in San Francisco that Amazon Web Services (AWS) will soon start using its Epyc chips. The announcement sent AMD shares up 8%.

AMD CEO Lisa Su said Amazon’s (AMZN) cloud unit, which holds the biggest market share in the cloud market, will use the chip to render services to third-party clients.

The Epyc chips will replace the standard computing chips from Intel (INTC), which have been used for years at their data centers. The Epyc chips are cheaper and are capable of operating numerous complex computing tasks.

In the third-quarter results published on October 24, CEO Su had stressed on Epyc’s contribution to the overall top line. She said, “We delivered our fifth straight quarter of year-over-year revenue and net income growth driven largely by the accelerated adoption of our Ryzen, Epyc and data center graphics products,” CEO Lisa Su said in the company’s earnings release.

AMD’s launches at Computex 2018 will leave NVIDIA scrambling

AMD shares had tumbled after the Q3 earnings announcement over a revenue miss and weaker-than-expected guidance. However, the stock has gained 81% so far this year, making it one of the fastest growing semiconductor companies.

Meanwhile, Intel (INTC) shares slipped 1% on Tuesday on news that AWS data centers were switching to AMD for chips.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “AMD stock gains 8% on partnership with Amazon

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top