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AMD EPYC CPUs Help Mercedes-AMG F1 Team Win Pole Position
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Advanced Micro Devices (AMD - Free Report) has helped Daimler’s Mercedes-AMG Petronas team win pole position in F1 racing. The Mercedes-AMG Petronas F1 racing team has showcased how AMD’s EPYC processors improved the company’s aerodynamics testing capacity.
In modern F1 racing, aerodynamics of the car is one of the biggest performance differentiators. One of the most important factors driving the same is Computational Fluid Dynamics (CFD), which models and tests aerodynamics flow.
Over the years, in order to create a proper competitive environment and help smaller racing teams with limited resources have a fighting chance, the Fédération Internationale de l'Automobile has dictated how much CFD performance and wind tunnel time F1 teams are allowed to use.
Further, a cap on overall spending has also been sanctioned. From $145 million in 2021, the metric is likely to reduce to $140 million in 2022 and $135 million in 2023. This budget includes the money spent on CFD servers. As a result, it is extremely important to obtain the most capable processor to accurately measure CFD in a cost-effective manner.
In order to achieve this goal, AMD EPYC processors were the clear winner for Mercedes. AMD EPYC processors helped Mercedes accurately solve the CFD factor. AMD has helped the Mercedes F1 team meet the goal of faster iterative performance and cutting the time in half due to 20 percent faster compute than their previous system’s gain of 1 or 2 percent.
Partnerships and Acquisitions Remain Key Growth Factors for AMD
AMD has strengthened its position in the server market on the back of EPYC processors. The growing adoption of EPYC processors has enabled leading cloud providers like Amazon’s (AMZN - Free Report) Amazon Web Services (AWS) to expand their AMD-powered offerings, thereby helping AMD connect with more customers.
Amazon’s AWS introduced the new Amazon EC2 Hpc6a instances in fourth-quarter 2021. AWS also launched general-purpose Amazon EC2 M6a instances.
Further, AMD's data center market is benefiting from the coronavirus crisis-triggered cloud computing boom. AMD recently announced that it has entered into a definitive agreement to acquire Pensando for approximately $1.9 billion before working capital and other adjustments.
AMD decided to buy Pensando to build a leading-edge data center cost-effectively without compromising security to provide the best performance to customers and intensify competition amid the industry peers. The company also completed the acquisition of Xilinx in an all-stock deal worth $35 billion.
On a combined basis, AMD and Xilinx will cater to some of the most important growth segments for the industry, including data center, gaming, PCs, communications, automotive, industrial, and aerospace and defense.
Yet, AMD is facing intense competition from NVIDIA (NVDA - Free Report) in its data-centric business.
NVIDIA is a dominant name in the data center, professional visualization and gaming markets, wherein the company’s peers are playing a catch-up role. NVIDIA is a major competitor of AMD in the GPU market, and competition in the mobile segment has been intensifying following NVIDIA’s acquisition of ARM Holdings.
Image: Bigstock
AMD EPYC CPUs Help Mercedes-AMG F1 Team Win Pole Position
Advanced Micro Devices (AMD - Free Report) has helped Daimler’s Mercedes-AMG Petronas team win pole position in F1 racing. The Mercedes-AMG Petronas F1 racing team has showcased how AMD’s EPYC processors improved the company’s aerodynamics testing capacity.
In modern F1 racing, aerodynamics of the car is one of the biggest performance differentiators. One of the most important factors driving the same is Computational Fluid Dynamics (CFD), which models and tests aerodynamics flow.
Over the years, in order to create a proper competitive environment and help smaller racing teams with limited resources have a fighting chance, the Fédération Internationale de l'Automobile has dictated how much CFD performance and wind tunnel time F1 teams are allowed to use.
Further, a cap on overall spending has also been sanctioned. From $145 million in 2021, the metric is likely to reduce to $140 million in 2022 and $135 million in 2023. This budget includes the money spent on CFD servers. As a result, it is extremely important to obtain the most capable processor to accurately measure CFD in a cost-effective manner.
In order to achieve this goal, AMD EPYC processors were the clear winner for Mercedes. AMD EPYC processors helped Mercedes accurately solve the CFD factor. AMD has helped the Mercedes F1 team meet the goal of faster iterative performance and cutting the time in half due to 20 percent faster compute than their previous system’s gain of 1 or 2 percent.
Advanced Micro Devices, Inc. Price and Consensus
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
Partnerships and Acquisitions Remain Key Growth Factors for AMD
AMD has strengthened its position in the server market on the back of EPYC processors. The growing adoption of EPYC processors has enabled leading cloud providers like Amazon’s (AMZN - Free Report) Amazon Web Services (AWS) to expand their AMD-powered offerings, thereby helping AMD connect with more customers.
Amazon’s AWS introduced the new Amazon EC2 Hpc6a instances in fourth-quarter 2021. AWS also launched general-purpose Amazon EC2 M6a instances.
Further, AMD's data center market is benefiting from the coronavirus crisis-triggered cloud computing boom. AMD recently announced that it has entered into a definitive agreement to acquire Pensando for approximately $1.9 billion before working capital and other adjustments.
AMD decided to buy Pensando to build a leading-edge data center cost-effectively without compromising security to provide the best performance to customers and intensify competition amid the industry peers. The company also completed the acquisition of Xilinx in an all-stock deal worth $35 billion.
On a combined basis, AMD and Xilinx will cater to some of the most important growth segments for the industry, including data center, gaming, PCs, communications, automotive, industrial, and aerospace and defense.
Yet, AMD is facing intense competition from NVIDIA (NVDA - Free Report) in its data-centric business.
NVIDIA is a dominant name in the data center, professional visualization and gaming markets, wherein the company’s peers are playing a catch-up role. NVIDIA is a major competitor of AMD in the GPU market, and competition in the mobile segment has been intensifying following NVIDIA’s acquisition of ARM Holdings.
Zacks Rank and Stock Performance
AMD shares carry Zacks Rank #3 (Hold) and have depreciated 32.6% in the year-to-date period compared with the Zacks Electronics-Semiconductors industry and the Zacks Computer and Technology sector’s decline of 21.4% and 16.6%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.