Known in the gaming arena for its Radeon RX 480 graphics card, Advanced Micro Devices, Inc. (AMD - Free Report) is making some smart moves by investing more in the software segment in a bid to enhance the user experience on its hardware.
Recently, the company announced that it has acquired HiAlgo Inc., a 3D-gaming tool developer for an undisclosed amount to transform the gaming experience on PCs running the Radeon Software suite.
Benefits of the Acquisition
Better gaming experience demands better technology and the HiAlgo team is deft at doing just that! Its expertise lies in creating plugins for Radeon GPUs, which facilitate better gaming performance, check overheating of the components and see that the switch between resolutions is a seamless task.
While much has been achieved by AMD and NVIDIA Corp. (NVDA - Free Report) in the field of semiconductors, something that could unlock the true potential of those processors was long awaited. HiAlgo’s acquisition is just a step forward in that direction.
Given the $140 billion worth gaming hardware market, we note that this acquisition could play an important role in furthering AMD’s gaming ambitions.
Right now, HiAlgo develops three primary tools namely HiAlgo Boost, HiAlgo Chill and HiAlgo Switch that are compatible with AMD’s RX 480 and targeted at capturing the mass market.
At present, AMD has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space include AXT Inc. (AXTI - Free Report) sporting a Zacks Rank #1 (Strong Buy) and Alpha & Omega Semiconductor, Ltd. (AOSL - Free Report) , carrying a Zacks Rank #2 (Buy).
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