Google’s (GOOGL, $1,210.46) gaming service to use AMD’s (AMD, $25.67) Radeon GPUs. Will AMD win against Nvidia (NVDA, $175.55)?
Alphabet Inc. announced that Advanced Micro Devices’s (AMD) Radeon GPUs and developer tools would be used in Google’s new video game streaming platform Stadia. AMD shares extended gains in pre-market trading Wednesday on the news.
That GPU growth is one of AMD’s key areas of focus for growth was apparent in CEO Lisa Su’s statement to investors in January. And now, with the news of the chipmaker gearing to supply custom-made chip and other tools for Google’s Stadia could potentially boost AMD shares.
AMD will also provide open-sourced Vulkan drivers to the gaming service.
Google’s Stadia will let users instantly participate in games that they can view on YouTube via a "Play Now" button on the screen. People would be able to play the games on desktops, laptops, tablets, TV sets and phones without requiring a console. It remains to be seen if Stadia turns out to be AMD’s trump card against rival chipmaker Nvidia's GeForce Now cloud gaming service.
Stock price of AMD climbed + 1.54% during pre-market Wednesday trading, following its +11.8% jump on Tuesday. Google shares moved little during pre-market trading, after gaining +1.17% Tuesday.
AMD's RSI Indicator is staying in oversold zone for 2 days
It is expected that a price bounce should occur soon.
Show more
Notable companies
The most notable companies in this group are NVIDIA Corp (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), Broadcom Inc. (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD), QUALCOMM (NASDAQ:QCOM), Texas Instruments (NASDAQ:TXN), Applied Materials (NASDAQ:AMAT), Intel Corp (NASDAQ:INTC), Lam Research Corp (NASDAQ:LRCX), Micron Technology (NASDAQ:MU).
Industry description
The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
Market Cap
The average market capitalization across the Semiconductors Industry is 46.09B. The market cap for tickers in the group ranges from 13.43K to 2.76T. NVDA holds the highest valuation in this group at 2.76T. The lowest valued company is CYBL at 13.43K.
High and low price notable news
The average weekly price growth across all stocks in the Semiconductors Industry was -3%. For the same Industry, the average monthly price growth was -1%, and the average quarterly price growth was 1%. QNCCF experienced the highest price growth at 30%, while MXL experienced the biggest fall at -43%.
Volume
The average weekly volume growth across all stocks in the Semiconductors Industry was 12%. For the same stocks of the Industry, the average monthly volume growth was 19% and the average quarterly volume growth was -0%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 58
P/E Growth Rating: 48
Price Growth Rating: 58
SMR Rating: 70
Profit Risk Rating: 62
Seasonality Score: 6 (-100 ... +100)