AMD chip supplier
AMD's (AMD) stock jumped to a new high on news of a partnership with Meta (Facebook's new name), which will use AMD chips for its data centres. AMD unveiled new Instinct MI200 accelerators and 3rd generation EPYC processors with AMD 3D V-Cache.
AMD (AMD) shares, up 95.44% over the past six months, jumped 10.14% to a new high price of $150.16 per share on Monday.
AMD's rising share price reflects the company's success in selling its data centre chips and the growing cloud computing and artificial intelligence technology industries.
AMD said on Monday that Meta Platforms (Facebook's new name) has become its customer, which will buy AMD EPYC processors as part of its data centre expansion efforts. Facebook had previously used Intel processors (INTC) for its data centres.
Facebook (FB) last month said it was changing its name to Meta and its share ticker to MVRS effective 1 December 2021 to show its commitment to virtual reality technology development.
Meta Platforms shares are up 24% since the start of the year, but lost 6% in the last quarter. The acquisition of Meta Platforms as a customer further proves the growing market share that AMD is capturing from Intel.
Cloud giants such as Microsoft (MSFT), Amazon (AMZN) and Google Alphabet (GOOGL, GOOG) are already buying AMD chips for their data centres.
AMD investors also welcomed the company's new products unveiled Nov. 8: the new AMD Instinct MI200 series accelerators, which the company said are "the world's fastest accelerators for high performance computing (HPC) and artificial intelligence (AI)," and a preview of the innovative AMD EPYC 3rd Generation processor with AMD 3D V-Cache.
EPYC data centre chips are becoming an increasingly important part of AMD's business, with sales for embedded, enterprise and semi-custom computing in Q3 totaling $1.9 billion of total revenues of $4.3 billion, up 69% from last year.
