(Updates with recent stock movement in headline and first paragraph.)

Advanced Micro Devices (AMD) shares were up 3.9% in afternoon trading on Monday after the company said it expanded its partnership with Microsoft spanning AMD GPUs, CPUs, networking and software on Microsoft Azure.

Microsoft will power frontier model AI inference through the deployment of the AMD Helios Rackscale Solution, and Azure will also add two new AMD EPYC CPU-powered VM series and broaden its use of Pensando DPUs to support its networking services.

"Through our collaboration with AMD, we are expanding the Azure infrastructure portfolio with AMD Helios to give customers the performance, scale and choice they need to build and run the next generation of AI applications," Microsoft Chairman and Chief Executive Officer Satya Nadella said.

AMD will begin shipping Helios to Microsoft and other customers in the second half of 2026, it said.

Price: 515.69, Change: +19.93, Percent Change: +4.02