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AMD, Google strike deal for new services

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On Thursday, Advanced Micro Devices and Alphabet's Google Cloud said Google will offer cloud computing services based on AMD's newest data center chip.

Video Transcript

MYLES UDLAND: Let's talk about a stock that is on the move higher in that tech sector. That is AMD. Stock is up about 3%. And Julie, we get some headlines here on AMD striking a deal with Google on its chips, getting involved with the cloud products suite of services.

JULIE HYMAN: Yeah, it's a data center chip in particular. So AMD basically said, and Google said, Google is going to offer cloud computing services based on that newest data center chip from AMD. And of course, this is a reflection of the fight that we've been seeing ongoing between AMD and Intel for market share. AMD's really been gaining some traction on Intel over the past couple of years, so this is yet another feather in the cap, so to speak, for AMD and is sending those shares higher. They're up about 4% today. They're not back at record levels, but nonetheless, we have definitely seen a comeback.

And it is interesting, Myles, obviously this is news-driven, but generally as we see the strength in tech today, it sort of flies in the face, doesn't it, of the idea that or the narrative we saw earlier in the year that higher rates were somehow going to be more negative for the tech sector? In the wake of the Fed yesterday, it seems as though we're going to see higher rates sooner rather than later, although still way in the future. But tech is actually performing fairly well.

MYLES UDLAND: Yeah, I mean, I think we saw, Sozzi, you remember that we saw all the peak growth stories. There was certainly an element of that in the tech trade. The NASDAQ has not been super encouraging over the balance of this year, but it does seem with the end of whatever emergency, however we want to characterize the Fed's emergency pandemic settings, but the end of that now starting to come into focus.

We begin to see I think the market really moving back towards what worked in the last cycle. And what worked in the last cycle is what a lot of people believe is going to work over the longer term looking past through the recovery into whatever the economy looks like as we normalize out of the pandemic. And so that is likely to be more growthier names, more of your secular growers, and of course, when we look at that part of the market, that really is where we find a lot of those tech names.