Shares of Advanced Micro Devices Inc. (AMD) - Get Report rose more than 6% in mid-day trading Tuesday, after CEO Lisa Su announced that Amazon.com Inc (AMZN) - Get Report would begin using AMD chips for its cloud business.
The e-commerce and cloud giant will use AMD's Epyc data center chips for its cloud business to provide services to customers, Su announced at the AMD Next Horizon event in San Francisco. Amazon also uses chips made by Intel Corp. (INTC) - Get Report in its data centers.
The Epyc chips are extremely versatile, and therefore valuable to Amazon Web Services.
AMD shares have more than doubled this year. Intel shares were down 1.3% to $47.33 on Tuesday following the announcement, and are up 2.6% so far this year.