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AMD Radeon GPUs to Boost Apple Mac Pro's Graphics Performance

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Advanced Micro Devices, Inc. (AMD - Free Report) recently announced that its latest Radeon Pro Vega II GPUs will support Apple’s (AAPL - Free Report) new Mac Pro, which is scheduled to hit shelves this fall.

AMD’s strength in GPU portfolio with superior graphic performance and high-quality visual experience capabilities remains the key catalyst behind the deal win.

The selection of AMD GPU by Apple is expected to challenge NVIDIA’s (NVDA - Free Report) dominance in the GPU market. Moreover, ongoing GPU roll outs and product enhancements are expected to bolster incremental adoption of AMD’s offerings, and consequently the top line.

Robust Features Favoring Adoption

AMD Radeon Pro Vega II GPUs are based on 7nm process technology. The GPUs offer high graphics performance to support intensive computation workloads, comprising 8K video, rendering, complex video effects, among others.

Moreover, AMD Radeon Pro Vega II GPUs utilize Infinity Fabric Link GPU interconnect technology and High Bandwidth Memory (HBM2). Per the company’s estimates, these credentials accelerate GPU-to-GPU data-transfer speed by up to 5X when compared with PCIe Gen 3 interconnect speed.

These features also bolster content creation significantly among creative professionals. For instance, it enables professionals to seamlessly edit 8K video footage with diverse filter options.

Wrapping Up

AMD has been securing notable customer wins on the back of its strength in high-performance GPU portfolio. We believe the latest development to be an important win for AMD given Apple’s significant market position among PC vendors.

Per PC shipment first-quarter 2019 data from IDC and Gartner, Apple has enhanced market share on a year-over-year basis and continues to hold the fourth slot.

AMD’s GPU being selected by Alphabet’s (GOOGL - Free Report) division Google’s upcoming cloud-based video game streaming service, Stadia is also noteworthy in this regard. Further, Samsung recently inked a multi-year agreement to utilize AMD’s Radeon GPUs in its smartphones.

We believe deal wins from bellwethers in the industry will instill confidence in the company’s stock and enhance its financial position in the longer haul.

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