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Here's Why Advanced Micro Devices (AMD) Stock Climbed Today

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Shares of Advanced Micro Devices (AMD - Free Report) surged over 4% on Wednesday to inch within striking distance of their 52-week high after the chipmaker announced some of its latest innovations at Computex in Taipei. Here’s a quick overview of some of AMD’s newest products that have investors so excited.

AMD’s presentation at Computex, a global information and communications technology and IoT show, wowed some gamers, DIY PC enthusiast, and investors. The company introduced and gave the first public demonstrations of its next generation CPUs and GPUs.

The chipmaker showed off its new 7nm AMD Radeon Vega GPU products, which are set to launch at some point in 2018. AMD also noted that its second generation Ryzen Threadripper processors will debut in the third quarter of 2018. This line features up to 32 cores and 64 threads and is designed to improve rendering, post production, and encoding workloads.

The company said at Computex, which was live streamed, that there will be 60 new Ryzen systems by the end of the year from manufacturers. AMD is also hopeful that it can gain 40% market share from online retailers. “Our upcoming 7nm and 12nm products build on the momentum of our Ryzen, Radeon, and EPYC processors, positioning AMD to lead the next generation of high-performance computing in markets from premium devices and gaming to machine learning and the datacenter,” CEO Dr. Lisa Su said in a statement.

AMD also discussed its Tencent (TCEHY - Free Report) cloud services partnership for its EPYC processors. Furthermore, AMD announced that its AMD EPYC 7000 series processor will power Hewlett Packard Enterprise’s (HPE - Free Report) ProLiant DL325 Gen10 server.

In another impressive partnership, AMD touched on details about its first Cisco (CSCO - Free Report) UCS server platform. One of AMD’s more easily accessible deals will see the chipmaker help bring ultrawide 4K gaming to Samsung big screen TVs.

All of these new releases should help AMD compete against the likes of Intel (INTC - Free Report) and Nvidia (NVDA - Free Report) . "We launched Ryzen in March 2017, and since we launched, there are over 5 million Ryzen users today, and really, many of those are in the DIY and enthusiast space who love building their own system," Su said during her Computex presentation.

"We are expanding the Rzen portfolio much much more. We are extremely excited about what Ryzen has done and more importantly, what Ryzen will do."

Investors should note that AMD is currently a Zacks Rank #3 (Hold) and its stock price was up nearly 240% over the last two years before Wednesday’s gains. AMD’s performance over the last month is also very impressive.

 

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