AMD stock jump on new data center chip

AMD stock. Advertisements help boost the company’s push against its competitors. AMD is in the process of taking market stock from market leader Intel as cloud providers such as Microsoft, Amazon and Google are buying chips to power their services. AMD has gained many performance advantages over competing Intel processors in recent years.

Advanced Micro Devices (AMD) on Monday announced new dedicated processors for various data center workloads. It also added Facebook as a client to its server segments. AMD shares jumped higher after the news.

During the online event, the Santa Clara, California-based company showcased the growing momentum of data centers and its latest high-performance processors.

AMD has announced that Meta Platforms (FB), the parent company of social networking network Facebook, is the latest ultra-wide cloud company to adopt AMD’s Epyc or CPU. AMD already provides processors to major cloud computing providers such as Amazon (AMZN), Microsoft (MSFT), and Google’s Alphabet (GOOGL).

Facebook’s win came as a surprise because it has historically used only Intel (INTC) processors, Hans Mossmann, an analyst at Rosenblatt Securities, said in a note to clients. He assessed AMD stock as a buy with a target price of 180.

AMD stock pops

In the stock market today, AMD stock jumped 10.1% to close at 150.16.

During the 40-minute event, CEO Lisa Su said that AMD has focused on manufacturing processors for four types of data center workloads. They include general purpose computing, technical computing, fast computing, and cloud-native computing.

“Our innovations in CPU, GPU (graphics processing unit), processes, and packaging enable AMD to deliver industry-leading performance across the datacenter,” said Su.

New accelerator, server processor

AMD on Monday unveiled the AMD Instinct MI200 series of accelerators, optimized for high-performance computing and artificial intelligence workloads. The company describes it as “the first exascale GPU accelerator.” AMD competes with Nvidia (NVDA) for GPUs.

AMD is also previewing the use of its 3D chip encapsulation technology in server CPUs. AMD Epyc 3rd generation processors with AMD 3D V-Cache will deliver an average performance increase of 50% across targeted technical computing workloads. The new chip will be launched in the first quarter of 2022.

In addition, AMD is sharing more details about its data center roadmap, including for 4th generation Epyc processors.

AMD looks to gain market share

“The CPU announcements we’ve seen disrupt Intel’s roadmap and position AMD in a leading position to capture more than half of the data center market by 2023,” Mosesmann said. In GPU computing, AMD makes an argument for outperforming Nvidia GPUs in high-performance computing applications, he said.

On October 18, AMD shares snapped their double bottom at 114.59 buying points, according to IBD MarketSmith charts.

“This event provides further evidence/persuasion on AMD’s strong and growing data center position and roadmap,” Wells Fargo analyst Aaron Rackers said in a note to clients. He reiterated his overweight, or buy, rating on AMD stock and raised his target price to 180 from 145.  sumber   :