This Thursday, the stocks for AMD have been making moves. It has risen by 5% over the course of that one day. The reason for this may have to do with recent comments that Microsoft’s tech chief made. He has been verbally supportive of AMD’s AI innovations. Usually, it is Nvidia that is most prominent in AI, but AMD’s rise may be a sign of a new competitor coming into the scene.
Both of the chip companies have done well this year. The stock for Nvidia is 3 times what it used to be, while AMD’s has gone up by 60%. So, obviously, one of them is doing considerably better than the other one, even though both have excelled. The launch of ChatGPT by OpenAI last year opened a whole new world of possibilities. Due to the rise of new AI following ChatGPT, new hardware has been necessary too. The new LLMs require a great amount of processing power. In this new environment, AMD may become among the best day trading stocks soon.
The Microsoft official stated that AMD is having a greater focus on GPUs right now. These GPUs will then become more essential for the market as time goes on. It is unsurprising that a Microsoft employee would say this, however. Microsoft and AMD’s partnership has been long-lasting and durable. Microsoft would of course want a more diverse range of GPUs in the market to make pricing more competitive.
Microsoft’s promotion of AMD’s chips has been going on for a while now. They have offered chips for Azure cloud users and have been using them in their Xbox consoles. However, Microsoft’s opinions still have importance for markets and have an effect on trending stocks.
There have even been reports as far back as May on AI chips that AMD and Microsoft have been collaborating on. Officials have declined to comment on these rumours for now, however.
