Advanced Micro Devices ( AMD Quick Quote AMD - Free Report) recently announced that its EPYC 7002 series processors are powering the new Hewlett Packard Enterprise ( HPE Quick Quote HPE - Free Report) Alletra 6000, a cloud-native data infrastructure storage solution. AMD’s EPYC 7002 series processors have the ability to scale from eight to 64 high-performance cores. The processors’ increased generational bandwidth of PCIe 4 offers up to three times faster performance than previous HPE Nimble Storage All Flash Arrays. Strong Demand for EPYC Aids AMD’s Prospects
AMD is benefiting from strong demand for EPYC processors. In first-quarter 2021, Enterprise, Embedded and Semi-Custom segment’s (39% of total revenues) revenues of $1.345 billion were up 286% year over year and 5% sequentially.
AMD noted record server processor revenues as EPYC processor sales more than doubled on a year-over-year basis and grew by a strong double-digit percentage, sequentially.
Markedly, in the server domain, AMD witnessed sequential increase in both second- and third-generation EPYC processors. Growing adoption of second-generation solutions was complemented by third-generation EPYC processors, which are successfully ramping into production amid new deal wins from major enterprise, cloud, and HPC companies.
Markedly, third-generation EPYC processors offer 25% more performance per watt compared to their previous-generation counterparts and also offer leading per core and per socket performance across database, ERP, data analytics, Java, virtualization, cloud and supercomputing workloads. Expanding Clientele to Boost Top Line
AMD is benefiting from sales of its Ryzen and EPYC server processors, owing to increasing proliferation of AI and Machine Learning (ML) in industries like cloud gaming and supercomputing domain. Further, the Xilinx acquisition is anticipated to boost AMD's data center business.
The expanding clientele is also expected to drive AMD’s growth. Apart from HPE, this Zacks Rank #2 (Buy) company’s EPYC processors are now used by leading cloud players including Amazon Web Services (AWS), Alphabet ( GOOGL Quick Quote GOOGL - Free Report) division Google Cloud and Microsoft Azure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. In fact, AMD’s EPYC 7003 series processors are now powering the new Perlmutter supercomputer at Lawrence Berkeley National Laboratory. Markedly, Perlmutter’s phase 1 features 1,536 nodes, each with one AMD EPYC 7763 processor and four NVIDIA ( NVDA Quick Quote NVDA - Free Report) NVlink-connected A100 Tensor Core GPUs. The phase 2 will add another 3,072 CPU-only nodes, each with two AMD EPYC 7763 processors and 512 GB of memory per node.
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