Google partnership and semiconductor shortages

AMD's stock rose 2.54 percent after news that the company's new AMD EPYC processor has been adopted by Google's data centre. In addition, the company announced ambitious targets for energy efficiency, EPYC processors and Instinct Accelerators.

AMD's share price fell 7.2 percent from the start of the week and rose 2.54 percent on Thursday. AMD reported 2 pieces of good news for investors at the same time, promising strong growth for the future.

Expansion of partnership with Google

AMD announced that Google Cloud (GOOGL, Googl) is extending the use of AMD EPYC processors for use in the company's virtual machines. Google Cloud states that the use of the new AMD EPYC 7003 series processors for n2d virtual machines can deliver an average price/performance improvement of more than 30% over previous generations of AMD EPYC processors.

Google Cloud claims global leadership and aims to compete with global cloud industry leaders AWS Amazon (AMZN) and Microsoft (MSFT). Google today continues to invest heavily in its cloud infrastructure, which should benefit AMD as a supplier of processors for its data centres.

AMD's goal to improve the energy efficiency of its products

AMD EPYC server processors and AMD Instinct accelerators are used in some of the world's most powerful and advanced computer systems.

AMD announced this week that by 2025, it plans to increase the efficiency of AMD EPYC processors and AMD Instinct accelerators by 30x with artificial intelligence (AI) learning technology and high-performance computing (HPC).

Demand for advanced computing power is growing worldwide, as research teams across industries use them to achieve breakthroughs in many fields, including materials science, climate prediction, genomics, drug discovery and alternative energy.

Accelerators are also integral to the training of AI neural networks, which are now being used for technologies such as speech recognition, for example.

In addition, AMD CEO Lisa Su, speaking at this week's Code Conference, confirmed industry insights that the semiconductor shortage in the global technology industry will be a temporary phenomenon.