Advanced Micro Devices Inc. shares suddenly soared Thursday, following a report that indicated the chip maker was working with Microsoft Corp. as it expands into processors for artificial intelligence. Bloomberg News reported Thursday that AMD
AMD,
+6.47%
and Microsoft
MSFT,
+0.60%
were working together on another option in the market for AI chips beyond what Nvidia Corp.
NVDA,
-1.19%,
the market leader, offers. Microsoft is providing financial support as AMD works on this initiative, according to the report, which cited unnamed sources.
AMD is also working with Microsoft on a “homegrown” Microsoft processor that would handle AI workloads, Bloomberg reported. Neither company confirmed the reporting on the record to Bloomberg; an AMD spokesperson declined to “comment on rumor or speculation” when reached by MarketWatch, and Microsoft did not immediately respond to a request for comment. AMD shares surged as much as 12% to an intraday high of $91.64 in afternoon trading Thursday. Microsoft’s stock was up 0.8% as Nvidia shares fell 1%. Companies involved in making the gear powerful enough to support AI work — such as Nvidia, AMD and Super Micro Computer Inc.
SMCI,
+1.59%
have been swept up in a wave of hype for artificial-intelligence technology going mainstream. The popularity of Microsoft-backed OpenAI’s ChatGPT sparked much of the interest in generative AI, which uses large-language models that require a lot of computing power. In AM …
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