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AMD Unveils Third-Generation EPYC Processors: Main Takeaways
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Advanced Micro Devices (AMD - Free Report) recently rolled out the third-generation AMD EPYC processors (codenamed Milan) to further its prospects in the server processor market. The new AMD EPYC 7003 Series CPUs are aimed at improving outcomes for high-performance computing (HPC), cloud and enterprise customers.
Per AMD estimates, the new EPYC processors will aid enterprise customers to boost efficacy and performance by improving transactional database processing by up to 19% and providing better performance for flexible Hyperconverged Infrastructure (HCI).
The latest AMD EPYC 7003 Series processors offer up to 64 “Zen 3” cores per processor. The latest EPYC chips also provide PCIe 4 connectivity and boast new levels of per-core cache memory. Third Generation EPYC processors offer up to 32MB of L3 cache per core.
AMD EPYC 7003 Series processors feature AMD Infinity Guard which offers advanced security features to safeguard stored data. The latest EPYC processors are embedded with a new security feature called Secure Encrypted Virtualization-Secure Nested Paging (SEV-SNP). This feature creates an isolated execution environment by extending Secure Encrypted Virtualization (SEV) capabilities on EPYC processors, thereby thwarting hypervisor-based attacks, noted AMD.
AMD also added that the company intends to grow the AMD EPYC processor ecosystem considerably by this year-end. By 2021, the chipmaker expects 100 new server platforms to leverage its third generation EPYC processors and more than 400 cloud instances to utilize EPYC processors (all generations).
AMD’s partner ecosystem includes names like Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”), Cisco, Oracle (ORCL - Free Report) , VMware, Lenovo, Dell Technologies, Google Cloud and Microsoft’s Azure cloud platform.
Microsoft’s Azure platform will utilize AMD EPYC 7003 Series chips for several new virtual machine offerings while AWS will deploy AMD EPYC 7003 Series CPUs to its core Amazon EC2 instance in the upcoming months.
Cisco’s latest Cisco Unified Computing System rack server models already utilize AMD EPYC 7003 Series chips.
Encouraging EPYC Prospects Bode Well
AMD is riding on a robust traction witnessed by its EPYC processors (especially second-generation processors) across virtualized and HCI architecture. The momentum is likely to get a further push by the fast-growing cloud computing market.
In the last reported quarter, AMD’s Enterprise, Embedded and Semi-Custom segment’s revenues soared 176% year over year to $1.284 billion, driven by higher semi-custom product revenues and better EPYC server processor sales.
The launch of third-generation processors is expected to further consolidate AMD’s position in the server market, which is dominated by Intel (INTC - Free Report) . Also, strength in 7 nanometer-based processors is expected to fortify AMD’s competitive stance in the commercial and server market against Intel.
Intel’s chips utilize process technologies that are designed in-house. However, Intel is marred by production delays pertaining to its 7 nm ramp up. Notably, AMD leverages Taiwan Semiconductor Manufacturing Company’s 7 nm process technology, which is facilitating it to deliver its advanced 7 nm chips faster to the target market.
This is expected to boost AMD’s revenues in the upcoming days and instill investors’ confidence in the stock. Notably, shares of AMD, which currently carries a Zacks Rank #3 (Hold), have returned 97% in the past year compared with the industry’s rise of 128.9%.
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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AMD Unveils Third-Generation EPYC Processors: Main Takeaways
Advanced Micro Devices (AMD - Free Report) recently rolled out the third-generation AMD EPYC processors (codenamed Milan) to further its prospects in the server processor market. The new AMD EPYC 7003 Series CPUs are aimed at improving outcomes for high-performance computing (HPC), cloud and enterprise customers.
Per AMD estimates, the new EPYC processors will aid enterprise customers to boost efficacy and performance by improving transactional database processing by up to 19% and providing better performance for flexible Hyperconverged Infrastructure (HCI).
The latest AMD EPYC 7003 Series processors offer up to 64 “Zen 3” cores per processor. The latest EPYC chips also provide PCIe 4 connectivity and boast new levels of per-core cache memory. Third Generation EPYC processors offer up to 32MB of L3 cache per core.
AMD EPYC 7003 Series processors feature AMD Infinity Guard which offers advanced security features to safeguard stored data. The latest EPYC processors are embedded with a new security feature called Secure Encrypted Virtualization-Secure Nested Paging (SEV-SNP). This feature creates an isolated execution environment by extending Secure Encrypted Virtualization (SEV) capabilities on EPYC processors, thereby thwarting hypervisor-based attacks, noted AMD.
Advanced Micro Devices, Inc. Price and Consensus
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
AMD Plans to Expand Partner Ecosystem
AMD also added that the company intends to grow the AMD EPYC processor ecosystem considerably by this year-end. By 2021, the chipmaker expects 100 new server platforms to leverage its third generation EPYC processors and more than 400 cloud instances to utilize EPYC processors (all generations).
AMD’s partner ecosystem includes names like Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”), Cisco, Oracle (ORCL - Free Report) , VMware, Lenovo, Dell Technologies, Google Cloud and Microsoft’s Azure cloud platform.
Microsoft’s Azure platform will utilize AMD EPYC 7003 Series chips for several new virtual machine offerings while AWS will deploy AMD EPYC 7003 Series CPUs to its core Amazon EC2 instance in the upcoming months.
Cisco’s latest Cisco Unified Computing System rack server models already utilize AMD EPYC 7003 Series chips.
Encouraging EPYC Prospects Bode Well
AMD is riding on a robust traction witnessed by its EPYC processors (especially second-generation processors) across virtualized and HCI architecture. The momentum is likely to get a further push by the fast-growing cloud computing market.
In the last reported quarter, AMD’s Enterprise, Embedded and Semi-Custom segment’s revenues soared 176% year over year to $1.284 billion, driven by higher semi-custom product revenues and better EPYC server processor sales.
The launch of third-generation processors is expected to further consolidate AMD’s position in the server market, which is dominated by Intel (INTC - Free Report) . Also, strength in 7 nanometer-based processors is expected to fortify AMD’s competitive stance in the commercial and server market against Intel.
Intel’s chips utilize process technologies that are designed in-house. However, Intel is marred by production delays pertaining to its 7 nm ramp up. Notably, AMD leverages Taiwan Semiconductor Manufacturing Company’s 7 nm process technology, which is facilitating it to deliver its advanced 7 nm chips faster to the target market.
This is expected to boost AMD’s revenues in the upcoming days and instill investors’ confidence in the stock. Notably, shares of AMD, which currently carries a Zacks Rank #3 (Hold), have returned 97% in the past year compared with the industry’s rise of 128.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>