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AMD Stock Rises on Vote of Confidence From a Big AI Chip Customer
By Adam Clark
July 20, 2026, 9:51 am EDT
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Microsoft plans to use AMD’s Helios AI infrastructure platform and EPYC processors to power more of its Azure cloud-computing services.
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The deal validates AMD’s Helios server racks, scheduled to launch in the second half of 2026, as AMD seeks to compete with Nvidia.
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The agreement provides Microsoft with more diversification in its chip supply chain beyond Nvidia.
Advanced Micro Devices is facing a tough battle to gain market share in the artificial-intelligence chip market. But it looks to have Microsoft on its side.
Microsoft plans to use AMD’s Helios AI infrastructure platform and EPYC data-center processors to power more of its Azure cloud-computing services, the two companies said Monday.
AMD stock jumped 5.1% to $521.23 on Monday after the market open, while the S&P 500 rose 0.7%.
A combination of Microsoft and AMD technology will power new tools for data processing, electronic design automation, and inference, or running AI models. No financial details were disclosed.
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For AMD, the deal provides validation that its Helios server racks are potentially ready to compete with AI chip leader Nvidia. Helios racks are scheduled to arrive on the market in the second half of 2026. AMD has already lined up Meta Platforms, Oracle, and OpenAI as other Helios customers.
For Microsoft, the deal provides more diversification in its chip supply chain beyond Nvidia. Microsoft also this year released its in-house Maia 200 AI chips, which it has previously said achieved the most efficient inference of all its hardware.
“Our approach to AI infrastructure is designed to support the breadth of how AI systems are built and run,” said Microsoft Executive Vice President Scott Guthrie, who runs the company’s cloud and AI group, in a statement. “We closely work with industry innovators like AMD as well as our own purpose-built silicon and systems to provide customers with a comprehensive, open and heterogenous platform to achieve the best performance, cost and energy efficiency outcomes.”
Write to Adam Clark at adam.clark@barrons.comExternal link
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