Advanced Micro Devices shares perked up Friday on a report that Microsoft plans to offer its cloud computing customers a platform on AMD artificial intelligence chips as an alternative to systems running Nvidia chips. AMD stock looked set to retake a key level on the news.
Reuters reported late Thursday that Microsoft plans to offer AMD processors on its Azure cloud computing service. The software giant intends to detail the arrangement at its Build conference next week.
Microsoft also will preview its new Cobalt 100 custom processors at the conference, which runs May 21-23 in Seattle, Reuters said.
Microsoft will offer clusters of AMD's MI300X AI chips on Azure, Reuters said. Azure customers will have a choice of using either AMD, Nvidia or Microsoft's Maia chips to run AI workloads.
AMD Stock Near Key Support Level
On the stock market today, AMD stock climbed 1.1% to close at 164.47. Earlier in the session, it had risen as much as 4.4% to 169.72. With the move, AMD stock returned to near its 50-day moving average line, a key support level.
AMD stock peaked at 227.30 on March 8 before retreating. It tumbled decisively below its 50-day line on April 4. AMD stock hit a recent low of 141.16 after delivering in-line results and guidance with its first-quarter report on April 30.
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