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Why Stock Prices for AMD and Nvidia Popped on Thursday

By Jose Najarro – Oct 1, 2021 at 10:30AM

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These two semiconductor giants announced new partnerships on the same day.

Today's video focuses on recent partnerships affecting Advanced Micro Devices (AMD -1.65%) and Nvidia (NVDA -1.51%). I also discuss which companies I believe benefit the most from these partnerships. Here are some highlights from the video.

  1. AMD's stock price closed 2.5% up after the company announced an expansion of its current collaboration with Alphabet's (GOOG -1.24%) (GOOGL -1.02%) Google Cloud. Nvidia's stock price closed 0.9% up after it announced a new partnership with Electronic Arts (EA -1.11%).
  2. On Sept. 30, AMD announced that Google Cloud is expanding its use of AMD's EPYC processors. Google Cloud previously offered developers the ability to use virtual machines powered by AMD's second-generation server processors. It will now be offering virtual machines powered by AMD's third-generation processor, which provides an improvement in price per performance. 
  3. On Sept. 30, Nvidia partnered with Electronic Arts to bring its games to Geforce Now. Geforce Now is Nvidia's cloud game streaming service that allows its subscribers to stream games on a high-performance Nvidia-powered computer. Geforce Now enables gamers to play high-performance games without needing an expensive gaming computer. The partnership is beneficial to Electronic Arts, as it provides EA with new customers who previously could not play EA games due to hardware restrictions.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Sept. 30, 2021. The video was published on Sept. 30, 2021.



Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jose Najarro owns shares of Advanced Micro Devices, Alphabet (C shares), and Nvidia. The Motley Fool owns shares of and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), and Nvidia. The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

Advanced Micro Devices Stock Quote
Advanced Micro Devices
AMD
$75.14 (-1.65%) $-1.26
Nvidia Stock Quote
Nvidia
NVDA
$162.70 (-1.51%) $-2.49
Alphabet (A shares) Stock Quote
Alphabet (A shares)
GOOGL
$97.46 (-1.02%) $-1.00
Electronic Arts Stock Quote
Electronic Arts
EA
$129.50 (-1.11%) $-1.46
Alphabet (C shares) Stock Quote
Alphabet (C shares)
GOOG
$97.60 (-1.24%) $-1.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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