AMD, NVDA, GFS, MRVL: Why are semiconductor stocks up today?

It’s been a turbulent year so far for semiconductor stocks as supply chain issues have constrained electronics makers. Today, however, brought good news for the sector, as Advanced micro-systems (NASDAQ:AMD) announced a major product release that caused shares to explode. Other semiconductor stocks are also up.

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What Happened With Semiconductor Stocks

According to a published statement by Advanced Micro Devices, “At the forefront of innovation and gaming performance, the AMD Ryzen 7 5800X3D processor is the first Ryzen processor to feature AMD 3D V-Cache technology.”

As noted, news of the release sent AMD stock into the green. Shares closed nearly 7% higher. For some of his industry peers, the day was even better. Nvidia (NASDAQ:NVDA) closed up almost 8% while Marvell Technology (NASDAQ:LMRV) gained more than 9%. GlobalFoundries (NASDAQ:SFP) closed up more than 12%.

why is it important

For anyone interested in PC gaming, this is big news. According to AMD, the Ryzen 7 5800X3D offers users “15% more gaming performance compared to processors without stacked cache technology”.

The company also noted the upcoming release of Ryzen 7, 5, and 3 Series processors. The company says this will give customers a more personalized computing experience.

The highly anticipated processor will hit stores worldwide on April 20 with prices starting at $449. Gaming enthusiasts certainly have reason to be excited about this. Until it hits shelves, AMD’s stock will likely continue to rise.

While the momentum generated by this news is driving semiconductor stocks higher today, other factors are also at play. InvestorPlace Contributor Faizan Farooque recently named AMD and NVDA as Web 3.0 players because of their first-mover advantage. Both NVDA and MRVL were flagged as “significant buys” nearly a month ago. Investors who took that advice are enjoying the ride today. Additionally, GlobalFoundries is an interesting play on semiconductor stocks as it offers a solution to the current chip shortage. The company has the best six-month performance of any stock on this list, with gains of nearly 40% since its stock market debut in late 2021.

What this means

Investors should have AMD and other semiconductor stocks on their radars over the coming month. In addition to today’s processor news, Wall Street also learned that Intel (NASDAQ:INTC) constructs a new manufacturing center in Germany. Finally, the market has seen many tech stocks rally today.

Semiconductor production has been complicated lately, but that doesn’t mean the demand is going down. Manufacturers who can find a way to stay ahead of the supply chain curve will be the winners of the year. This is especially true for those with Web 3.0 or metaverse applications.

At the date of publication, Samuel O’Brient held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to Publication guidelines.

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