Advanced Micro Devices shares rose Thursday after a news report said software giant Microsoft is working with the chipmaker on artificial intelligence processors. AMD stock surged more than 6% on the day.
Bloomberg reported that Microsoft and AMD are teaming up to develop an alternative to Nvidia's graphics processing units, which currently dominate the AI market.
Microsoft is providing financial support to bolster AMD's AI efforts, Bloomberg said. Plus, Microsoft is working with AMD on a homegrown Microsoft processor for AI workloads, code-named Athena, the report said.
On the stock market today, AMD stock climbed 6.1% to close at 86.61. Meanwhile, Nvidia stock dipped 0.9% to 275.62. Microsoft stock advanced 0.3% to 305.41.
AMD Stock Regains Lost Ground
With the positive move Thursday, AMD stock clawed back much of the ground it lost Wednesday after its mixed first-quarter earnings report. However, AMD is still trading beneath its 50-day moving average line, a negative sign.
On Wednesday, AMD stock tanked 9.2% to close at 81.62. Late Tuesday, the Santa Clara, Calif.-based company beat expectations for the first quarter but came up short with its sales forecast for the second quarter. Advanced Micro Devices is facing weak PC sales and a softening data center market.
AMD stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
