AMD Continues to Wow Investors With New Alibaba Collaboration
Advanced Micro Devices Inc. (NASDAQ: AMD) has been on an absolute tear over the past year. This stock has risen over 200% easily in this time, and it seems poised to do more. Recent collaborations have added even more wood to the fire, and AMD is expanding its exposure in perhaps one of the world’s largest e-commerce sites.
Both AMD and Alibaba Group Holding Ltd. (NYSE: BABA) are posting handy gains to close out the week, after announcing a new collaboration. Specifically, Alibaba Cloud is looking to use AMD’s Radeon Pro GPU technology in its global data centers. Alibaba Cloud plans to use AMD technology to help expand its cloud computing offerings and accelerate adoption of its cloud-based services.
AMD is known as one of the largest suppliers of PC microprocessors and graphics processors worldwide to computing original equipment manufacturers. The company’s main product lines include desktop, notebook and server processors and chipsets.
Simon Hu, president of Alibaba Cloud, commented:
The partnership between AMD and Alibaba Cloud will bring both of our customers more diversified, cloud-based graphic processing solutions. It is our vision to work together with leading technology firms like AMD to empower businesses in every industry with cutting-edge technologies and computing capabilities.
Dr. Lisa Su, AMD president and chief executive, added:
The collaboration between AMD and Alibaba Cloud leverages the world-class technology and software engineering capabilities of both companies to meet the growing demand for standards-based GPU computing solutions capable of enabling more immersive and intuitive cloud services. Working closely with industry leaders like Alibaba Cloud helps ensure the investments AMD is making in our high-performance graphics and computing datacenter products continue to align with the needs of the broader cloud market.
Aside from Friday’s move, AMD has incredibly outperformed the broad markets, with the stock up 126% year to date. It’s hard to believe, but the numbers get even better looking at the past 52 weeks, with the stock up 232% in this time.
Shares of AMD were last seen up about 7% at $7.95, with a consensus analyst price target of $6.24 and a 52-week trading range of $1.75 to $8.00.
Alibaba was up fractionally at $102.75. The consensus price target is $113.45, and the 52-week range is $59.25 to $109.87.