Advanced Micro Devices, Inc. (NASDAQ:AMD) recently entered into strategic partnership with Samsung Electronics (KS:005930) Co., Ltd. with an aim to bring immersive graphics experience to smartphone users.
Per the terms of the multi-year agreement, AMD’s high performance Radeon graphics solutions and technologies will be integrated with by Samsung’s SoCs to enhance mobile applications.
Consequently, AMD will receive license payments and royalty fees for its RDNA graphics architecture-based custom graphics IP solutions. However, the financial terms of the deal have been kept under wraps.
Partnership with a bellwether like Samsung with focus on mobile computing is expected to expand AMD’s Radeon graphics’ market reach significantly.
We believe this is a noteworthy win for AMD and strengthens its competitive position against graphics peers, including NVIDIA (NASDAQ:NVDA) and ARM Holdings (LON:ARM).
Growing Adoption Fuels Optimism
Streaming of graphics-intensive games requires high-performance processing functionalities which reduce latency and accelerate game performance in a securely managed infrastructure. These requirements favor the adoption AMD’s Radeon GPUs.
AMD has been securing notable customer wins on the back of its strength in GPU portfolio offering higher-performance with low-power consumption.
Markedly, AMD is powering forthcoming gaming consoles from Sony. Further, Alphabet (NASDAQ:GOOGL) division Google’s upcoming cloud-based video game streaming service, Stadia utilizes AMD’s customized Radeon datacenter GPUs.
The company is leaving no stone unturned to capitalize on the growing clout of console/cloud gaming across devices, be it PCs, laptops or mobile phones. These developments instill confidence in the stock.
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