Why AMD Inventory Is Up Extra Than 4% Right this moment

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What occurred

Shares of Advanced Micro Devices (NASDAQ:AMD) have been up 4.2% at the moment as of three:30 p.m. EDT. The run larger builds on the 13% return AMD had in July following the corporate’s excellent second-quarter 2021 earnings replace. The chip designer reported a 99% year-over-year increase in sales and up to date its outlook for full-year 2021, now calling for gross sales development of fifty% to 60%. 

So what

As for at the moment’s leap within the inventory worth, it may be chalked as much as a brand new product-line announcement from AMD. The firm stated its new Radeon PRO W6000X collection GPUs (graphics processing items) shall be obtainable in Apple‘s (NASDAQ:AAPL) Mac Pro desktop computer systems. The GPUs, designed completely for the Mac Pro, will give Apple’s flagship pc an enormous improve within the graphics division. The least expensive tier within the lineup, the W6900X, has greater than double the efficiency of AMD’s Mac Pro predecessor, the W5700X GPU.

Someone in an office using a smartphone and multiple computer monitors.

Image supply: Getty Images.

The large leap in capabilities will enable customers to run not simply high-end video video games, but additionally 8K decision graphics, 3D movie and sport animation creation, and different computing-intensive rendering actions for skilled creators and avid gamers.  

Now what

The heavy punch the Radeon PRO W6000X collection delivers in efficiency has an equally heavy-hitting price ticket: $2,400 to equip a Mac Pro with the W6800X, and $5,600 for the W6900X. A configuration that permits for 2 GPUs working in tandem (the W6800X Duo, or two W6900X GPUs) doubles the worth from there.

AMD’s GPU work for Apple is not new, so the chips do not essentially characterize the incremental addition of consumers to assist AMD construct on its torrid tempo of development. Nevertheless, amongst these Apple customers who select to improve their Mac Pro desktops, AMD is prone to generate rather a lot in gross sales and earnings. 

The semiconductor firm has come a good distance technologically lately and continues to advance its chip capabilities because it scoops up market share from the likes of Intel (NASDAQ:INTC). The unique GPUs for Apple by themselves aren’t a purpose to spend money on AMD, however they do illustrate the area of interest this small-ish chip designer has carved out for itself as a leader in high-end computing {hardware}.

This article represents the opinion of the author, who could disagree with the “official” suggestion place of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even considered one of our personal — helps us all suppose critically about investing and make choices that assist us change into smarter, happier, and richer.


This web page was created programmatically, to learn the article in its authentic location you possibly can go to the hyperlink bellow:
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Nicholas Rossolillo

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