Chip makers’ shares
And Advanced Micro Devices took a hit late Friday night on a report
Is developing its own microprocessors for servers used in its Azure cloud service, and possibly for its Surface personal computers.
Bloomberg reports that Microsoft is using a design based on ARM technology to build the processors used in its data centers, and the company is also considering building another chip for Surface devices. The branch is owned by SoftBank (SFTBY), which has agreed to sell the business
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(AMZN) and other companies with large server farms.
(AAPL) recently announced the first MacBook Air and MacBook Pro laptops, with processors based on in-house and arm technology.
“Because silicon is a fundamental building block for technology, we are continuing to invest in our capabilities in areas such as design, manufacturing and equipment, while also promoting and strengthening partnerships with a wide range of chip providers.” Microsoft spokesman Frank Shaw said. in a statement.
Neither Intel nor AMD responded immediately to the request for comment.
Patrick Moorehead, an analyst at Moore Insights and Strategy, noted that there is “hot competition” in the cloud infrastructure market, noting that he would not be surprised by a move by Microsoft with Amazon Web Services. “Silicon is strategic, not commodity, and the industry was eventually woken up to this,” he said.
Intel fell 6.3% to $ 47.46 on Friday, while Advanced Micro Devices fell 1% to $ 93.56 after trading at $ 95.952. Microsoft shares fell 0.4% to $ 218.59.
Write Eric J. at [email protected] Savitz