AMD shares rose about 4 percent on Tuesday after the semiconductor company said Amazon's cloud unit would start using its Epyc data center chips to deliver services to third-party customers.

The announcement was made by AMD CEO Lisa Su at the AMD Next Horizon event in San Francisco.

Amazon Web Services is the world's largest public cloud infrastructure provider, ahead of Microsoft, whose Azure cloud already offers computing instances powered by Epyc processors. For years, Intel's standard computing chips have been inside of servers in AWS data centers. Last year AMD graphics cards became available from AWS.

The Epyc chips are part of AMD's Enterprise, Embedded and Semi-Custom business segment, which is smaller than the Computing and Graphics segment that includes chips for PCs. Epyc has been fueling revenue growth, Su said last month.

The new chips will deliver multiple types of EC2 instances, which can be used for various types of computing workloads. They'll be 10 percent less expensive than comparable instances, according to a statement.

Intel stock moved slightly lower after AMD made its Amazon announcement. AMD shares have more than doubled this year.

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