Advanced Micro Devices AMD recently expanded its fourth-generation EPYC CPU portfolio with the launch of 8004 series processors that are based on Zen 4c core and a new SP6 socket.
EPYC 8004 series processors can provide up to two times better SPEC power performance per system watt compared with the closest competition.
AMD’s EPYC 8004 series processors deliver balanced performance and excellent energy efficiency that is required at the edge.
For instance, EPYC 8534P provides up to 2.4 times the aggregate frames/hour/system watt against the nearest competition in a video encoding workload. In an IoT Edge gateway workload, an eight-core EPYC 8024P-powered server can provide roughly 1.8 times the total throughput performance per 8kW rack compared with the nearest competition.
AMD Benefits From Expanding Partner Base
AMD is benefiting from a solid partner base that includes the likes of Dell Technologies DELL, Microsoft MSFT, Amazon Web Services (“AWS”), Alibaba and Oracle. Cloud providers like Microsoft, AWS, Alibaba and Oracle deployed Genoa in the second quarter of 2023.
AMD, along with its partners, continues to offer solutions that enable greater data center consolidation. The company is benefiting from the impressive performance of fourth-generation EPYC CPUs. As data center applications scale in complexity, AMD Pensando DPUs emerge as the ideal solution for offloading infrastructure services from CPUs, freeing up valuable work cycles.
Dell is leveraging AMD EPYC fourth-generation CPUs in its latest PowerEdge C6615 server. In combination with OpenManage Enterprise software, Dell servers enable cloud service providers to intelligently monitor their systems and deliver more efficient compute services.
Microsoft cloud arm Azure announced the first Genoa-X HPC instances that offer more than five times higher performance in technical computing workloads compared to their prior generation.
Currently, there are more than 670 AMD-powered cloud instances publicly available, and this number is expected to grow 30% to 900 by the end of 2023, primarily due to the adoption of Genoa.
Moreover, the availability of Bergamo is crucial, as several server providers like Dell, HPE, Lenovo and Supermicro are set to launch their new Bergamo-based platforms in the third quarter.
These factors are expected to boost AMD’s prospects in the near term. The company expects third-quarter 2023 revenues to be $5.7 billion (+/-$300 million), which indicates year-over-year and sequential growth of 2.5% and 6.5%, respectively.
Zacks Rank & A Stock to Consider
AMD currently carries a Zacks Rank #3 (Hold).
Shares have outperformed the Zacks Computer & Technology sector year to date. AMD shares have returned 58.1% while the broader sector has risen 37.3%.
NVIDIA NVDA is a better-ranked stock in the broader sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVDA shares have returned 200.8% year to date. The long-term earnings growth rate for NVIDIA is currently pegged at 13.5%.
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