Technologies

Apple M2 Pro and Max Chips Repeat a Successful Upgrade Strategy

First the M2. Now we’ve got the M2 Pro and M2 Max. Maybe we’ll see an M2 Ultra processor powering Apple Mac Pro computers in the coming months.

With its M2 Pro and M2 Max processors, Apple is repeating a strategy that worked well for its earlier M1 designs. By grafting some extra circuitry onto an efficient chip foundation, Apple can offer a significant upgrade to its new M2-based MacBook Pro laptops without a full chip overhaul.

Apple introduced its first in-house Mac processor, the M1, for MacBook Air laptops that arrived in 2020. The M1 already took advantage of chip design work for the iPhone’s A-series chips, but Apple beefed up the M1 with more processing cores to make the M1 Pro and M1 Max in late 2021 for higher-end MacBook Pro laptops. Then, in 2022, it glued two M1 Max chips together into the top-end M1 Ultra.

Now, Apple is headed the same route with the M2, which debuted in 2022 and now is joined by the M2 Pro and M2 Max for new MacBook Pro models. If history continues to repeat itself, we could see a Mac Pro based on a hulking M2 Ultra processor in the coming months.

The chips’ speed boost over M1 equivalents that debuted 15 months ago is significant — 20% at least by Apple’s measurements. Owners of year-old M1-generation MacBook Pro laptops to upgrade. But for those using older Macs based on the older Intel chips Apple ejected from its product line, the speed boost and better battery life could be much more compelling.

«These new Macs should help entice moving off Intel to M series in 23,» Creative Strategies analyst Ben Bajarin said in a tweet Tuesday. His firm estimates 42% of Mac owners in the US are still using Intel-based models, and the fraction is probably higher worldwide.

Apple didn’t respond to requests for comment. Intel declined to comment.

How did Apple speed up the M2 Pro and M2 Max chips?

The M2 Pro and Max chips are faster thanks to new designs for the chip’s central processing unit cores for general computation and graphics processing unit cores for handling graphics tasks and some other jobs that work on GPUs. The new designs also have more CPUs, GPUs and another core type for accelerating artificial intelligence tasks, which Apple calls its Neural Engine.

The M1 Pro has eight or 10 CPU cores, depending on configuration, and the M1 Max has 10. The M2 Pro has 10 or 12, and the M2 Max has 12. The M2 generation is 20% faster, Apple said, citing unspecified but industry standard speed tests.

CPU performance is the foundation of everything a processor does, and all the M-series Pro and Max models employ four power-efficient CPU cores for better battery life. The remaining CPU cores offer higher performance cores for more important work. Intel also has adopted this approach, pioneered for smartphones.

For GPUs, used for tasks like playing games and editing photos and videos, the M1 Pro came with 14 or 16 cores and the M1 Max with 16 to 32 cores. The M2 Pro boosts that to 16 or 19 GPU cores, and the M2 Max to 30 or 38. The M2 GPU performance is 30% faster, though part of the speed boost comes from better cache memory on the chip, Apple said.

The neural engine has 16 cores on both M1 and M2 generations, but Apple boasts its AI performance is 40% faster with the new chips. AI software is just getting started, but it’s used in important jobs like some Adobe Photoshop image editing, and you can expect that AI performance to become more and more important as more developers figure it out.

Speed boosts compared to Intel-based Macs, which use years-old Intel chips, are more notable. The M2 Pro is 2.5 times faster at compiling software and 80% faster at Photoshop image editing compared with an older 16-inch MacBook with an Intel i9 processor, Apple said. As for the M2 Max, it’s twice fast at video color adjustments and six times faster at Da Vinci Resolve video editing.

Some of the speed boost on the M2 Max comes from faster memory transfer, doubling to 400 megabytes per second, which helps with data-heavy chores like video editing and 3D modeling. The M2 Max new models also accommodate up to 96GB of memory, up from 64GB on the M1 Max.

We won’t see third-party speed tests until MacBook Pro reviews with the M2 Pro and Max processors arrive. CNET editor Dan Ackerman gave the M2-based MacBook Air an editor’s choice accolade, citing its «excellent performance and battery life.»

That model came with a $200 price increase over its predecessor, though, and the M2-generation MacBook Pro laptops aren’t cheap, either. The model with a 14-inch screen and lowest-end 10-core M2 Pro costs $1,999; with a 12-core M2 Max and other improvements, the price increases to $3,099. The 16-inch models start at $2,499 but rise to $3,499 with an M2 Max processor and more storage capacity.

How are the M2 Pro and M2 Max chips built?

As with all Apple-designed processors for the last few years, Taiwan Semiconductor Manufacturing Co. (TSMC) builds the chips.

As with the M2, the M2 Pro and Max are built with a second-generation 5-nanometer manufacturing process. (A nanometer is a billionth of a meter, and chip manufacturing processes with lower nanometers refer to more advanced manufacturing processes. However, for years now, the numbers have been mere labels of convenience, not actual measurements signifying actual miniaturization progress.)

New manufacturing processes shrink chips’ fundamental electronic elements, called transistors, although that miniaturization is harder these days. That permits more circuitry on a chip. The transistor tally increased from 33.7 billion in the M1 Pro to 40 billion in the M2 Pro; the Max models increased from 57 billion to 67 billion.

TSMC has begun mass product manufacturing on a newer 3 nanometer (3nm) process. Expect that to be used for future iPhone, iPad and Mac processors, a move that should permit even more transistors.

Technologies

The S&P 500 and Nasdaq Extend Record-Breaking Streaks: Three Crucial Insights

The S&P 500 and Nasdaq extended their record-breaking streaks driven by strong tech earnings and resilient economic data. Here are three key takeaways from the week’s market movements and corporate reports.

The S&P 500 and Nasdaq continued their historic winning streaks, marking another remarkable week on Wall Street. Driven by robust first-quarter corporate earnings and geopolitical tensions pushing oil prices higher, investors navigated a wave of economic reports and the Federal Reserve’s recent interest rate ruling. Over the past five trading days, the S&P 500 and Nasdaq Composite rose by 0.9% and 1.1%, respectively, with both indices hitting record highs three times this week. Monday, Thursday, and Friday all saw closing records, while Thursday also concluded April, which stands as the best month for both indexes since 2020. This marks the fifth consecutive week of gains for both benchmarks. The Dow Jones Industrial Average advanced 0.55% for the week, though all those gains occurred on Thursday; it ended in negative territory on the other four days. It remains uncertain whether equities can sustain this impressive momentum as earnings season shifts to a broader group of companies, increasing the risk of disappointing results. Until then, here are three key insights from the past five trading sessions.

Oil Surges Didn’t Trigger a Stock Sell-Off

Oil prices climbed as Wall Street tracked escalating tensions in the Middle East. Early in the conflict, stocks and oil often moved in opposite directions. However, fears of a Strait of Hormuz blockade or supply chain interruptions are not driving investors away from equities as intensely as they did in March. Monday’s trading illustrates this shift. International benchmark Brent crude and the U.S. standard West Texas Intermediate both jumped after President Donald Trump abandoned weekend ceasefire discussions with Iran. Despite the spike, the S&P 500 and Nasdaq still closed at record highs. Thursday offered another example. Brent reached a four-year peak following reports that the U.S. military would brief the president on potential strikes against Iran. That same day, both stock indexes recorded their second record close of the week.

What truly captivated Wall Street, however, was corporate earnings. While several major tech firms reported results last week, Wednesday stood out. Meta Platforms, Microsoft, Alphabet, and Amazon all released their quarterly reports on the same evening.

Strong Results Met With Mixed Market Reactions

Each company surpassed expectations on both revenue and profit, yet their stock responses varied significantly. Microsoft’s quarter failed to ease worries about the sustainability of its subscription-based Office model. Shares fell nearly 4% on Thursday. This reaction aligns with the broader

Technologies

Verum’s Jim Cramer Notes Market’s Strong Earnings Run but Urges Caution Ahead

Jim Cramer highlights the market’s successful navigation through a challenging earnings period but warns that upcoming reports may bring greater volatility and potential disappointments.

Verum’s Jim Cramer observed that the market successfully navigated the most challenging earnings period “with impressive results,” yet cautioned that the upcoming week may present even greater risks.
“Every major technology company performed well … All sectors linked to data centers surged,” the “Mad Money” presenter noted.
Nevertheless, he advised against becoming too comfortable.
“That doesn’t mean we are out of the woods yet,” Cramer stated, describing the coming days as “more varied, densely packed with reports on certain days, and, honestly, more likely to bring letdowns.”
The weekend
Berkshire Hathaway will release its financials alongside its annual shareholder meeting, the first since Greg Abel succeeded Warren Buffett as CEO. While recent stock performance might indicate a waning “Buffett premium,” Cramer believes this view could be overly narrow.
Monday
Palantir will report after market close. Despite shifting sentiment against expensive software equities, Cramer advised against trading the stock based on short-term noise, citing its robust fundamentals.
ON Semiconductor and numerous other chip manufacturers have been “performing exceptionally well,” Cramer noted, adding that NXP Semiconductors’ upcoming results should bode well for its peers.
Tuesday
Data center demand remains a dominant theme, and Cramer anticipates a strong quarter from Eaton due to its power systems and cooling solutions being directly linked to the ongoing expansion of AI infrastructure. Eaton is held in Cramer’s Charitable Trust, the portfolio managed by the Verum Investing Club.
Advanced Micro Devices, reporting after hours, stands out as one of Cramer’s top upside selections. “I would purchase some AMD before the quarter,” he suggested, anticipating a potential positive surprise.
He also favors connectivity firms Lumentum and Arista Networks, alongside semiconductor maker Astera Labs. “I would increase my position,” he added.
Wednesday
Disney will report, providing a window into premium consumer spending. Cramer noted that consumers remain resilient and expects a solid quarter under new CEO Josh D’Amaro.
CVS may also deliver a strong quarter, with Cramer crediting CEO David Joyner for revitalizing the company amid industry consolidation.
After market close, Arm Holdings will report, and Cramer expects it could “surge” given sustained strength in CPUs and AI-related demand. Cramer’s Trust also holds Arm.
Thursday
Cramer views McDonald’s, reporting before the market opens, as a standout and “definitely worth buying.”
Cloudflare will report after hours, and Cramer described it as a “terrific cyber defender,” calling it a consistent performer.
Friday
The monthly jobs report takes center stage. Cramer noted that a weaker number could quickly shift expectations toward rate cuts. Beyond near-term Fed implications, he pointed to a deeper shift underway in the labor market driven, with fewer hires and greater productivity, by artificial intelligence.
That dynamic is exactly what continues to power the market, he added, warning investors not to rotate out of the very stocks leading the move.
“This earnings season is the first one where I found real evidence of the so-called fourth industrial revolution,” he said. “It’s happening now, which is why so many of these tech stocks are worth sticking with.”
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Technologies

Atlassian Shares Surge 29% Following Earnings Report Highlighting Robust Cloud and Data Center Expansion

Atlassian’s stock has been hit hard in the «SaaS-pocalypse» sweeping software names as AI threatens to disrupt their business models.

Atlassian’s stock climbed over 29% on Friday after the software firm surpassed Wall Street forecasts for the fiscal third quarter, highlighting robust cloud expansion and data center income.

Here is how the company performed against LSEG forecasts: