Shares of AMD soars after Amazon announces new business from its cloud unit

Following the announcement made by AMD where it stated that Amazon’s cloud unit would start using its Epyc data center chips to deliver services to third-party customers.  Shares of the semiconductor company rose by nearly 4 percent on Tuesday, November 6th.

As per reports, AMD CEO Lisa Su made the announcement at the AMD Next Horizon event in San Francisco.

According to expert analysts, Amazon Web Services is the largest public cloud infrastructure provider of the entire world, beating even Microsoft, whose Azure cloud already offers computing instances powered by Epyc processors.

The Epyc chips fall under the category of AMD’s Enterprise, Embedded and Semi-Custom business venture, which is smaller in comparison to the Graphics and Computing segment that includes chips for PCs. According to a statement given by Su back in the previous month, revenue growth has been fuelled through Epyc.

As per revealed by the statement, multiple types of EC2 instances will be delivered through the new chips that shall be utilized for various types of computing workloads. Also, they would could 10 percent less in comparison to its alternatives.

Following the Amazon announcement made by AMD, Intel stock moved slightly lower. Although, so far this year shares of AMD have doubled.

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