AMD (Advanced Micro Devices, Inc.) is a multinational company specializing in the manufacture of semiconductor components for computer processing. The company also makes flash memories, graphics processors, motherboard chipsets, and a range of other components for consumer electronics.

Google will use the latest AMD data center chip to provide cloud computing services. AMD’s efforts to bring Intel Corp. Decrease market share will accelerate through this measure. Google is a major buyer of data center processors. They create services on the chips so that millions of consumers can rent computing power.

The new AMD-based services are being tested by Snap Inc and Twitter Inc. AMD is gaining market share against Intel, which has long been the leading player in data center processors, but whose products are based on Intel. in some ways inferior are production problems.

AMD is a strong bet on the megatrends of cloud computing and data center expansion. It’s a bet on the growing complexity of artificial intelligence and big data analytics. Nvidia’s GPU chips are also fighting for their money. AMD is betting on the next generation of Xbox and Sony PlayStation consoles, as well as the launch of a new Nintendo Switch later this year. AMD is also becoming a major competitor in PCs and laptops.

CPU sales are growing faster than the industry as a whole, suggesting that AMD is gaining market share from competitors.

AMD builds its latest Ryzen and EPYC processors with TSMC and thus offers access to the most modern manufacturing technologies. The latest PlayStation and Xbox game consoles, as well as Tesla’s in-car gaming setup, all use AMD CPUs. AMD’s profits were helped by strong demand for these consoles. In the first quarter, AMD sales rose 93 percent, while net income more than quadrupled.

Impact on stocks

Advanced Micro Devices stock rose 4% today after the company announced that Google, an Alphabet subsidiary, selected AMD’s latest data center processor to launch a new service.

AMD has been a leader in high-performance computing, graphics and visualization technologies for more than 50 years, providing the foundation for games, immersive platforms and the data center.

AMD’s market share peaked at 20% in 2006, and that was the company’s highest point. Intel was the one who ate AMD’s food back then. It will be interesting to see how Intel stocks perform because that will directly affect AMD.

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