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AMD Strengthens Portfolio With New AI & Data Center Products

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Advanced Micro Devices (AMD - Free Report) is expanding its portfolio with the launch of the Ryzen 8040 series processor with Ryzen AI and Instinct MI300 Series data center AI accelerators. The company also introduced the ROCm 6 open software stack with significant optimizations and new features supporting Large Language Models.

The latest Ryzen 8040 series mobile processors, when combined with Ryzen AI NPU on-die, extend AMD’s leadership position in the AI-supported PC markets. The processor is fast, with the Ryzen 9 8945HS offering up to 64% faster video editing and up to 37% faster 3D rendering than the competition. It is expected to attract gamers as the new series offers up to 77% faster gaming performance.

The latest Ryzen 8040 series is based on AMD Zen 4 processor architecture and supports advanced LPDDR5 memory. In combination with Radeon graphics and select systems powered by AMD XDNA architecture, the new processors are designed for creative professionals, gamers and mainstream users looking for a powerful laptop capable of running advanced AI experiences.

Systems leveraging Ryzen 8040 series processors will be globally available from leading original equipment manufacturers, including Acer, Asus, Dell Technologies (DELL - Free Report) , HP, Lenovo and Razer, beginning in 2024.

AMD has also made Ryzen AI widely available, which now makes developers capable of building and deploying machine learning models trained in PyTorch or TensorFlow and run them on select laptops powered by Ryzen AI.

New Accelerators Expand Data Center Footprint

AMD is expanding its data center footprint with the new Instinct MI300X accelerator. It combines CDNA 3 architecture and Zen 4 CPUs to deliver robust performance for HPC and AI workloads. Partners like Microsoft, Oracle and Dell are already using the accelerators in its systems.

Microsoft (MSFT - Free Report) is using AMD’s Instinct accelerator portfolio in its new Azure ND MI300x v5 virtual machine series, optimized for AI workloads.

Moreover, Oracle’s (ORCL - Free Report) Cloud Infrastructure plans to add AMD Instinct MI300X-based bare metal instances to its high-performance accelerated computing instances for AI.

Dell recently demonstrated its PowerEdge XE9680 server that features eight AMD Instinct MI300 series accelerators and the new Dell Validated Design for Generative AI with AMD ROCm-powered AI frameworks.

AMD, along with its partners, continues to offer solutions that enable greater data center consolidation. Its partnerships with the likes of Dell, Microsoft, Amazon Web Services (“AWS”), Alibaba and Oracle have been key catalysts.

These factors are expected to boost AMD’s prospects in the near term. This Zacks Rank #3 (Hold) company expects fourth-quarter 2023 revenues to be $6.1 billion (+/-$300 million), which indicates year-over-year growth of 9% and 5% sequentially at the mid-point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMD expects to witness year-over-year growth in the Data Center and Client segments by double-digit percentage. Sequentially, the Data Center segment’s revenues are expected to grow on a double-digit percentage, while Client is expected to increase.

The Zacks Consensus Estimate for fourth-quarter 2023 revenues is pegged at $6.11 billion, indicating 9.2% year-over-year growth. The consensus estimate for earnings is pegged at 77 cents per share, suggesting 11.59% year-over-year growth.

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