This has been a turbulent year for semiconductor stocks so far, as supply chain problems have posed constraints for electronics producers. Today brought some good news for the sector, though, as Advanced Micro Devices (NASDAQ:AMD) announced an important product release that sent shares shooting up. Other semiconductor stocks are rising as well.
What Happened With Semiconductor Stocks
According to a statement released by Advanced Micro Devices, “At the cutting edge 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 up nearly 7%. For some of its industry peers, the day has been even better. Nvidia (NASDAQ:NVDA) closed up almost 8% while Marvell Technology (NASDAQ:MRVL) gained more than 9%. GlobalFoundries (NASDAQ:GFS) closed up higher by more than 12%.
Why It Matters
For anyone concerned with 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 customized computer experience.
The highly awaited processor will be in stores across the globe on April 20 with prices starting at $449. Gaming enthusiasts certainly have reason to be excited about it. While they wait for it to hit shelves, AMD stock will likely keep rising.
While the momentum generated by this news is pushing semiconductor stocks up today, there are other factors at play as well. InvestorPlace contributor Faizan Farooque recently named both AMD and NVDA as Web 3.0 plays due to their first-mover advantage. Both NVDA and MRVL were flagged as “strong buys” almost one month ago. Investors who followed that advice are enjoying today’s ride. 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 almost 40% since its trading debut in late 2021.
What It Means
Investors should have AMD and other semiconductor stocks on their radars in the month ahead. In addition to today’s processor news, Wall Street also learned that Intel (NASDAQ:INTC) is building a new manufacturing hub in Germany. Lastly, the market did see many tech stocks rally today.
Semiconductor production has been complicated of late but that doesn’t mean that demand is subsiding. Manufacturers who can find a way to stay a step ahead of the supply chain curve will emerge as winners of the year. This is particularly true for those with Web 3.0 or metaverse applications.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.