What happened
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.
So what
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.
Now what
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.
10 stocks we like better than Advanced Micro Devices
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 1, 2020
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
