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AMD's Epyc 4: Revolutionizing Data Centers and Boosting Stock

Published by MEXEM EUROPE

July 25, 2024 2:51 PM
(GMT+2)

Based in Santa Clara, California, AMD {{ m-tag option="price" ticker="AMD" currency="USD" }} recently unveiled its new server processors, claiming up to 2.8 times greater performance and a 54% reduction in power consumption compared to competitors.

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Analysts Hail AMD's Epyc 4 as a "Game-Changer"
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Hans Mosesmann, an analyst at Rosenblatt Securities, labeled the newly released Epyc 4, also known as Genoa, a "game-changer" in a report titled "Transforming the Data Center Landscape." Mosesmann stated that AMD's latest processor excels in virtually all key metrics, including performance, energy efficiency, and total cost of ownership.

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AMD Stock Soars Following Processor Launch:
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AMD's stock experienced a significant uptick, rising 5.7% to $72.37 on the announcement day. Furthermore, the stock surged 14.3% during a widespread market rally on Thursday.

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AMD vs. Intel: A Comparative Analysis:
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Mosesmann emphasized that Genoa is poised to outperform Intel's Xeon processors, requiring 67% fewer CPUs while consuming over 50% less power. Meanwhile, Intel's delayed Sapphire Rapids processor, intended to compete with AMD's Epyc 3, is slated for an early 2023 release. Mosesmann rates AMD stock as a buy and Intel stock as a sell.

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Matt Bryson of Wedbush Securities praised AMD's new chip, stating it "delivers on all fronts." Despite Intel's struggles with its Sapphire Rapids platform, AMD has not rested on its laurels, offering substantial upgrades in performance and features compared to its previous Epyc 3 series.

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Manufacturing Details:
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Taiwan Semiconductor Manufacturing (TSM) will produce AMD's fourth-generation Epyc server processors using advanced 5-nanometer technology.

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Strong Customer Base at Launch Event:
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Ambrish Srivastava of BMO Capital Markets noted the impressive lineup of customers at AMD's launch event, including Google Cloud, Dell Technologies, Hewlett Packard Enterprise, Lenovo, Microsoft Azure, Oracle, and Supermicro. Srivastava expressed optimism about AMD's continued market share growth in the data center sector.

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AMD's Industry and Stock Ratings:
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According to IBD Stock Checkup, AMD ranks 14th out of 34 stocks in the fabless chipmaker industry. It holds a below-average IBD Composite Rating of 46 out of 99, combining five proprietary ratings into a single, user-friendly score. The highest-performing growth stocks typically have a Composite Rating of 90 or above.

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The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.
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