Shares of Advanced Micro Devices (NASDAQ:AMD) climbed 6.2% to a closing high of $90.82 on Monday, as investors cheered the launch of its new gaming-focused processor.
A new entry-level graphics processing unit (GPU) stealthily made its debut on AMD’s website this past weekend. The Radeon RX 5300 GPU promises “exceptional performance and high-fidelity gaming.” It also is reportedly cheaper than a comparable graphics card from rival NVIDIA (NASDAQ:NVDA).
Despite the quiet launch, investors took notice and bid up AMD’s shares.
Advanced Micro Devices’ stock hit a record high on Monday. Image source: Getty Images.
AMD’s stock is now up a stunning 98% so far in 2020. The chipmaker is rapidly taking share from rival Intel (NASDAQ:INTC) in the massive server processor market, as the semiconductor giant struggles with costly production delays for its next-generation chips. Intel’s problems are driving cloud computing titans such as Amazon.com to deploy AMD’s currently superior chips in droves.
Now, it appears that AMD is also attempting to gain ground on NVIDIA in the gaming graphics market. It won’t be easy, as NVIDIA is a fierce competitor with strong technological expertise. But judging by today’s gains, investors like AMD’s chances.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and NVIDIA. The Motley Fool recommends Intel and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.