Advanced Micro Devices (AMD) Stock: Epyc Sends This Thing Flying

Advanced Micro Devices, Inc. (NASDAQ: AMD) is having a great morning in the market this morning, and for good reason. The company released details with regard to its newest offering, one that’s likely to cause some pain for Intel (INTC). Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:37), AMD is trading at $13.47 per share after a gain of $0.83 per share or 6.60% thus far today.

AMD Takes On Xeon With Epyc

As mentioned above, yesterday proved to be a great day for Advanced Micro Devices as the company launched its newest processor, known as Epyc. The company’s goal with this processor seems to be to take market share from Intel in the data center and enterprise server space, and if you look at how the stock is reacting, it’s clear that investors believe that AMD has a fighting chance in the industry, but why wouldn’t they?

The new Epyc processors are, well, epic. The processor has been built around Zen architecture. The processors will range from Epyc 7251, which is an 8 core, 16 thread chip running between 2.1 and 2.9 GHz in a 120W power invelope, to the Epyc 7601, which is a 32 core, 64 thread chip running at 2.2 to 3.2GHz with a 180W design power. For those of you who aren’t sure what all that means, it simply means that AMD has created the best processor on the market today, stepping on Intel’s toes in the data center and enterprise server space.

Intel Vows To Top Epyc

While Epyc has investors clamoring for more AMD, Intel is hoping to make this a short term trend. In fact, the company released a statement, vowing to top the Epyc processors. Here’s what they had to say…

We take all competitors seriously, and while AMD is trying to re-enter the server market segment, Intel continues to deliver 20+ years of uninterrupted data center innovations while maintaining broad ecosystem investments. Our Xeon CPU architecture is prove and battle tested, delivering outstanding performance on a wide range of workloads and specifically designed to maximize data center performance, capabilities, reliability, and manageability. With our next-generation Xeon Scalable processors, we expect to continue offering the highest core and system performance versus AMD. AMD’s approach of stitching together 4 desktop die in a processor is expected to lead to inconsistent performance and other deployment complexities in the data center.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on AMD. In particular, we’re interested in following the Epyc processor takeoff. While Intel has pointed out what they believe to be an issue, the overall consensus is that Epyc is the best thing on the market to date. Nonetheless, it will be interesting to see what INTC comes up with to compete with Epyc. We’ll continue following the story closely and bringing the news to you as it breaks!

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