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.