AMD (NASDAQ:AMD) announced that it has been selected by the Department of Energy’s Exascale Computing Project (ECP) to accelerate critical computing technology research for the development of the nation’s first exascale supercomputers. The new three-year PathForward program provides funding for research and development to drive critical advances of next-generation supercomputing hardware technologies.

PathForward differs from previous exascale research efforts in that it puts even greater emphasis on co-design to foster innovation, encouraging close collaboration between AMD and other program participants. The PathForward program will address the four key technical challenges of exascale computing: parallelism, memory and storage, reliability, and energy consumption. AMD will work on CPU and GPU microarchitecture, memory systems, component integration, and high-speed interconnects. AMD’s work for PathForward will emphasize an open, standards-based approach to heterogeneous computing to improve the performance, power-efficiency, and ease of use for exascale systems.

“We are honored to be among the select few companies chosen by the U.S. Department of Energy to provide necessary research supporting the development of the advance technologies required for exascale supercomputers,” said Alan Lee, corporate vice president for research and advanced development, AMD. “We have been working on exascale research for five years now, and PathForward will take our work to a new level, focusing on system-level technology integration with partners. We are well prepared for this initiative, as evidenced by our high-performance technologies development along with long-standing participation in standards bodies.”

The ECP seeks to address the nation’s most pressing scientific challenges by advancing simulation-based scientific discoveries made possible by the world’s highest performing exascale supercomputers. The technologies developed as part of this initiative could also positively impact low-power embedded, cloud/datacenter, and high-performance computing applications for diverse fields ranging from medical science to astrophysics and climate modeling.

Shares of Advanced Micro Devices are up 1.5% to $11.68 in after-hours trading. AMD has a 1-year high of $15.55 and a 1-year low of $4.46. The stock’s 50-day moving average is $11.48 and its 200-day moving average is $12.05.

Sentiment on the street is mostly neutral on AMD stock. Out of 18 analysts who cover the stock, 9 suggest a Hold rating , 6 suggest a Buy and 3 recommend to Sell the stock. The 12-month average price target assigned to the stock is $11.67, which represents a slight upside 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.