Stock Update (NASDAQ:AMD): Advanced Micro Devices, Inc. Lifts Expectations for Server Performance


Advanced Micro Devices, Inc. (NASDAQ:AMD) ushered in a new era for high-performance server processors and the datacenter with EPYC™. With its high core count, superior memory bandwidth, and unparalleled support for high-speed input/output channels in a single chip1, EPYC aims to revolutionize the dual-socket server market while simultaneously reshaping expectations for single-socket servers. Previously codenamed “Naples,” this new family of high-performance products for cloud-based and traditional on-premise datacenters will deliver the highly successful “Zen” x86 processing engine scaling up to 32 physical cores2. The first EPYC-based servers will launch in June with widespread support from original equipment manufacturers (OEMs) and channel partners.

“With the new EPYC processor, AMD takes the next step on our journey in high-performance computing,” said Forrest Norrod, senior vice president and general manager of Enterprise, Embedded & Semi-Custom Products. “AMD EPYC processors will set a new standard for two-socket performance and scalability. As we demonstrated today, we see further opportunity with the industry’s first no-compromise one-socket solutions. We believe that this new product line-up has the potential to reshape significant portions of the datacenter market with its unique combination of performance, design flexibility, and disruptive TCO.”

Today, at the 2017 AMD Financial Analyst Day, a single EPYC processor was shown exceeding the performance of a competitive mid-range, two-socket / two-processor platform in a head-to-head comparison. EPYC exceeds today’s top competitive offering on critical parameters, with 45% more cores1, 60% more input/output capacity (I/O)2, and 122% more memory bandwidth3.

“Dropbox is currently evaluating AMD EPYC CPUs in-house, and we are impressed with the initial performance we see across workloads in single-socket configurations,” said Akhil Gupta, vice president of infrastructure at Dropbox. “The combination of core performance, memory bandwidth, and I/O support make EPYC a unique offering. We look forward to continuing to evaluate EPYC as an option for our infrastructure.”

EPYC Features

  • A highly scalable, 32-core System-on-a-chip (SoC) design, with support for two high-performance threads per core
  • Industry-leading memory bandwidth, with 8 channels of memory per EPYC device3. In a dual-socket server, support for up to 32 DIMMS of DDR4 on 16 memory channels, delivering up to 4 terabytes of total memory capacity
  • Complete SoC with fully integrated, high-speed I/O supporting 128 lanes of PCIe® 3, negating the need for a separate chip-set
  • Highly-optimized cache structure for high-performance, energy-efficient computing
  • Infinity Fabric coherent interconnect for two EPYC CPUs in a dual-socket system
  • Dedicated security hardware

“Today’s single-socket server offerings push buyers toward purchasing a more expensive two-socket server just to get the memory bandwidth and I/O they need to support the compute performance of the cores,” said Matthew Eastwood, senior vice president, IDC.  “There are no fully-featured, high-performance server processors available today in a single-socket configuration. EPYC changes that dynamic by offering a single-processor solution that delivers the right-sized number of high-performance cores, memory, and I/O for today’s workloads.”

Shares of AMD are down nearly 3% to $12.38 in after-hours trading Tuesday. AMD has a 1-year high of $15.55 and a 1-year low of $3.69. The stock’s 50-day moving average is $12.63 and its 200-day moving average is $11.46.

Sentiment on the street is mostly neutral on AMD stock. Out of 15 analysts who cover the stock, 7 suggest a Hold rating, 6 suggest a Buy and 2 recommend to Sell the stock. The 12-month average price target assigned to the stock is $12.64, which represents a slight downside potential from current levels.

Advanced Micro Devices, Inc. is a global semiconductor company that develops computer processors and related technologies for business and consumer markets. It design and integrate technology for intelligent devices, including personal computers, game consoles and cloud servers. It operates through the following segments: Computing and Graphics, and Enterprise, Embedded and Semi-Custom. The Computing and Graphics segment includes desktop, notebook processors, chipsets, discrete GPUs and professional graphics. The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties.