Advanced Micro Devices (AMD Quick QuoteAMD - Free Report) is benefiting from strong demand for EPYC processors thanks to adoption by the likes of Microsoft (MSFT Quick QuoteMSFT - Free Report) , Hewlett Packard (HPE Quick QuoteHPE - Free Report) and Alphabet (GOOGL Quick QuoteGOOGL - Free Report) .

The company’s EPYC processors have been used in developing a number of high-performance computing systems. These include Microsoft Azure supercomputers for United Kingdom’s Met Office, The Perlmutter supercomputer and The Singapore National Supercomputing Centre supercomputer.

The U.S. Department of Energy’s Argonne National Laboratory have chosen AMD’s EPYC processors to power a new supercomputer, called Polaris, which will prepare researchers for the forthcoming exascale supercomputer at Argonne called Aurora.

AMD recently announced that Alphabet’s Google Cloud is expanding its use of EPYC processors with the preview of N2D Virtual Machines (VMs), which deliver, on average, over 30% better price performance across a variety of workloads. The N2D VM is powered by AMD EPYC 7003 Series processors.
 

Advanced Micro Devices, Inc. Price, Consensus and EPS Surprise

Advanced Micro Devices, Inc. price-consensus-eps-surprise-chart | Advanced Micro Devices, Inc. Quote

Last quarter, Google Cloud and AMD announced a new instance (T2D) based on Third-Gen EPYC processors. AMD’s second-gen EPYC processors are powering the new HPE Alletra 6000 storage solutions.

Strong Sales of Ryzen and EPYC Aids AMD

AMD is riding on robust performance of the Computing and Graphics, and Enterprise Embedded and Semi-Custom segments. The company is benefiting from strong 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.

In second-quarter 2021, Computing and Graphics segment revenues of $2.25 billion increased 65% year over year and 7% sequentially. Enterprise, Embedded and Semi-Custom segment revenues were $1.60 billion, up 183% year over year and 19% sequentially.

The growing clout of 7 nanometer (nm) products in the data center vertical, driven by the work-from-home and online-learning trends, is a key catalyst. AMD raised its 2021 guidance for revenues and gross margin on the back of strong growth across all businesses. The Xilinx acquisition is likely to boost this Zacks Rank #3 (Hold) company’s data center business. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.