Introducing 3rd Gen AMD EPYC Processors for the Modern Data Center
Advanced Micro Devices Inc released the second generation of its data center processor chips on Wednesday and announced that it has acquired Google and Twitter Inc as customers..
AMD unveils its latest server chip – EPYC 2, Wall Street analysts are already calling the news «history-changing event».
The latest generation of AMD server chips use new technology to help them deliver better performance with less power.
AMD shares jumped 15% on Thursday after the opening of trading. Google stated that will become the main buyer chip – both for own use of the data center and for business in the Google cloud. Microsoft, Amazon, Hewlett Packard Enterprise, Dell and Twitter have announced they will also upgrade to the EPYC 2 chip or increase their current orders.
Hans Mosesmann, an analyst at Rosenblatt Securities, compared AMD’s new offering with an alternative to competitor Intel. While Intel’s new Cascade Lake chip could take the lead in the fight for the highest clock speed, the expert noted that this figure is less important for data center utilization, stating that the AMD chip provides 2.5–4 times higher.
AMD is competing with Intel Corp to supply data center chips that support Internet services. Both companies have relied on data center chips as drivers of business growth, because personal computer sales are not growing as users have switched to mobile devices..
Intel, which makes chips in its own factories instead of relying on contractors, is behind its chip delivery schedule. The company plans to release them next year..
AMD is trying to take advantage of this by reaching out to some of Intel’s biggest customers, such as Google..
Rosenblatt Securities rates AMD shares as «buy» with a target price of $ 42 per share. The stock is up about 80% since the start of the year. AMD has 13 recommendations according to Bloomberg «buy», 19 recommendations «Keep» and five recommendations «sell» from analysts, with a consensus price of $ 31.59 per share.
Intel, which said Google and Twitter remain its customers, is the dominant data center chip supplier, with more than 90% of the market under control..
But AMD is making headway with its most recent chips. Patrick Moorehead, founder of Moor Insights & Strategy, said it estimates AMD has taken Intel’s low market share to 10% with its first-generation EPYC server chips, and he expects that share to increase as second generation chips announced on Wednesday.
In terms of performance, according to Moorhead, AMD’s new chips are better than Intel’s in some types of computing work, but may lag behind others. He said new features of Intel chips for machine learning tasks and new memory technologies could give Intel an edge in these areas..