What happened 

Shares of Advanced Micro Devices (AMD -1.81%) climbed as high as $122.48 on Wednesday, marking a new record. As of 2:35 p.m. EDT, the popular tech stock was up more than 5%.

So what

AMD debuted its Radeon PRO W6000X series graphics processing units (GPUs) for Apple's Mac Pro desktop computers on Tuesday. The new chips offer a powerful performance boost compared to prior models and are expected to see strong demand from professionals who require advanced graphics capabilities. 

A person is pointing to an upwardly sloping stock chart.

Shares of Advanced Micro Devices are up sharply in recent days. Image source: Getty Images.

AMD's shares also appear to be receiving a lift from a report that the U.K. government might reject rival chipmaker Nvidia's (NVDA -2.48%) pending $40 billion acquisition of Arm Ltd. British regulators are reportedly concerned about potential national security risks, according to Bloomberg. 

Now what

A combined Nvidia and Arm would be a dominant force in the semiconductor industry. The potential for the deal to be blocked -- and, by extension, the prospect of a less powerful Nvidia -- could bode well for AMD and other chipmakers.

AMD, meanwhile, is already firing on all cylinders. Its revenue and adjusted earnings per share soared 99% and 250%, respectively, to $3.9 billion and $0.63 in the second quarter. "We are growing significantly faster than the market with strong demand across all of our businesses," CEO Lisa Su said in the company's earnings release on July 27.