Advanced Micro Up On Rumored Radeon GPU Deal With Intel
Zacks Investment Research | Dec 06, 2016 08:11PM ET
Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) hit a new 52-week high of $9.54 on Tuesday following rumors that the company has inked a licensing agreement with Intel Corporation (NASDAQ:INTC) for its graphics processing units (GPUs). The stock closed the day’s session at $9.45, up 8.87% on healthy volumes of 92.02 million.
As per media sources, Intel is licensing Advanced Micro’s Radeon GPUs with a purpose to use them in its next generation CPUs. In this regard, we note that Intel’s current licensing agreement with NVIDIA Corporation (NASDAQ:NVDA) for its GPUs is scheduled to expire in Mar 2017.
It should be noted that Radeon technology has been gaining traction, which is a positive for the company's top line. Notably, AMD along with Alienware partnered with Fox and New Regency to launch virtual reality (VR) in Assassin's Creed Movie, in which the Radeon technology was used. Moreover, on Oct 14, AMD announced a partnership with online retail giant Alibaba (NYSE:BABA) for the supply of Radeon Pro GPUs for its cloud services.
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