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