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AMD Benefits From Expanding Portfolio, Strong Partner Base
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Advanced Micro Devices (AMD - Free Report) has been benefiting from a robust portfolio and expanding clientele. It recently strengthened its footprint in the gaming industry with the introduction of the AMD Radeon RX 7900M, a laptop GPU, and the Alienware m18 laptop.
In addition to gaming, AMD continues to make strides in the data center market by launching Ryzen Threadripper PRO 7000 WX-Series processors for professionals and businesses, offering top-tier performance and security. It also reintroduced the Ryzen Threadripper 7000 Series processors for high-end desktop users, featuring impressive multi-core performance and up to 64 cr.
AMD's presence in the enterprise data center market is being fortified with the utilization of fourth-generation EPYC CPUs and Pensando data processing units (DPUs).
AMD, along with its partners, continues to offer solutions that enable greater data center consolidation. Its partnerships with the likes of Dell Technologies (DELL - Free Report) , Microsoft (MSFT - Free Report) , Amazon Web Services (“AWS”), Alibaba and Oracle have been key catalysts.
Cloud providers like Microsoft, AWS, Alibaba, and Oracle deployed Genoa in the second quarter of 2023. Microsoft Azure announced the first Genoa-X HPC instances offering more than five times higher performance in technical computing workloads than their prior generation.
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 monitor their systems and intelligently deliver more efficient computing services.
AMD recently acquired Nod.ai, a compiler-based automation software provider, to further strengthen its capabilities. This move will enhance AMD's ability to develop software-driven technology, accelerating AI solutions deployment for its various product lines, including data center accelerators, processors and GPUs.
The acquisition is expected to strengthen AMD’s competitive position against NVIDIA (NVDA - Free Report) in the software market.
Through its CUDA toolkit, NVIDIA offers a development environment for creating high-performance GPU-accelerated applications.
Moreover, the growing adoption of fourth-generation EPYC by enterprises brightens prospects. In second-quarter 2023, the adoption of fourth-generation EPYC CPU accelerated with revenues, almost doubling sequentially as cloud providers expanded deployments to support their internal infrastructure and public instance offerings.
Currently, there are more than 670 AMD-powered cloud instances publicly available. The number is expected to grow 30% to 900 by the end of 2023, primarily owing 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), indicating year-over-year growth of 2.5% and 6.5% sequentially.
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AMD Benefits From Expanding Portfolio, Strong Partner Base
Advanced Micro Devices (AMD - Free Report) has been benefiting from a robust portfolio and expanding clientele. It recently strengthened its footprint in the gaming industry with the introduction of the AMD Radeon RX 7900M, a laptop GPU, and the Alienware m18 laptop.
In addition to gaming, AMD continues to make strides in the data center market by launching Ryzen Threadripper PRO 7000 WX-Series processors for professionals and businesses, offering top-tier performance and security. It also reintroduced the Ryzen Threadripper 7000 Series processors for high-end desktop users, featuring impressive multi-core performance and up to 64 cr.
AMD's presence in the enterprise data center market is being fortified with the utilization of fourth-generation EPYC CPUs and Pensando data processing units (DPUs).
AMD, along with its partners, continues to offer solutions that enable greater data center consolidation. Its partnerships with the likes of Dell Technologies (DELL - Free Report) , Microsoft (MSFT - Free Report) , Amazon Web Services (“AWS”), Alibaba and Oracle have been key catalysts.
Cloud providers like Microsoft, AWS, Alibaba, and Oracle deployed Genoa in the second quarter of 2023. Microsoft Azure announced the first Genoa-X HPC instances offering more than five times higher performance in technical computing workloads than their prior generation.
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 monitor their systems and intelligently deliver more efficient computing services.
AMD recently acquired Nod.ai, a compiler-based automation software provider, to further strengthen its capabilities. This move will enhance AMD's ability to develop software-driven technology, accelerating AI solutions deployment for its various product lines, including data center accelerators, processors and GPUs.
The acquisition is expected to strengthen AMD’s competitive position against NVIDIA (NVDA - Free Report) in the software market.
Through its CUDA toolkit, NVIDIA offers a development environment for creating high-performance GPU-accelerated applications.
Moreover, the growing adoption of fourth-generation EPYC by enterprises brightens prospects. In second-quarter 2023, the adoption of fourth-generation EPYC CPU accelerated with revenues, almost doubling sequentially as cloud providers expanded deployments to support their internal infrastructure and public instance offerings.
Currently, there are more than 670 AMD-powered cloud instances publicly available. The number is expected to grow 30% to 900 by the end of 2023, primarily owing 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), indicating year-over-year growth of 2.5% and 6.5% sequentially.