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Google Cloud turns to AMD for Cloud computing services

AMD (Advanced Micro Devices, Inc.) is a multinational corporation specializing in the production of semiconductor devices for computer processing. In addition, the company makes flash memory, graphics processors, motherboard chipsets, and a range of other components for consumer electronics.

Google will use AMD’s newest data center chip to provide cloud computing services. AMD’s effort to take market share from Intel Corp. is anticipated to accelerate due to this action. Google is a major purchaser of data center processors. They create services on top of the chips to allow millions of consumers to rent computer power.

Why Google Is Developing Its New Own Silicon?

Snap Inc is testing the new AMD-based services. Twitter Inc. AMD has been gaining market share against Intel, which has been the leading player in data center processors for a long time but whose products are inferior in certain ways due to Intel’s production woes.

AMD is a strong bet on the cloud computing and data center expansion megatrends. It’s a wager on artificial intelligence’s and big data analytics’ growing complexity. Its GPU chips are also giving Nvidia a fight for their money. AMD is betting on the next generation of Xbox, and Sony PlayStation consoles, as well as the introduction of a new Nintendo, Switch later this year. AMD is becoming a significant competitor in PCs and laptops as well.

Sales of CPUs are rising faster than the entire industry, indicating that AMD is gaining market share from competitors.

AMD builds its newest Ryzen and EPYC processors with TSMC, providing it access to cutting-edge manufacturing techniques. The latest PlayStation and Xbox game consoles and Tesla’s in-car gaming setup all use AMD CPUs. AMD’s profits have been helped by strong demand for those consoles. In the first quarter, AMD’s sales increased by 93 percent, while its net income more than quadrupled.

Effect on Stocks

Advanced Micro Devices’ stock jumped 4% today after the firm revealed that Google, an Alphabet subsidiary, has chosen AMD’s newest data center processor to start a new service.

AMD has led the way in high-performance computing, graphics, and visualization technologies for more than 50 years, providing the foundation for gaming, immersive platforms, and the data center.

AMD’s market share peaked at 20% in 2006, and that was the company’s highest point. Intel was the one that was taking AMD’s food back then. It will be interesting to see how the Intel stocks perform because that will directly impact AMD.

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