Advanced Micro Devices, Inc. (NASDAQ:AMD) announced their collaboration with Microsoft to incorporate the cloud delivery features of AMD’s next-generation “Naples” processor with Microsoft’s Project Olympus — Microsoft’s next-generation hyperscale cloud hardware design and a new model for open source hardware development with the OCP community.
Through Microsoft’s contribution of the Project Olympus design much earlier in the cycle than many OCP projects, AMD was able to engage early on in the design process and foster a deep collaboration around the strategic integration of AMD’s upcoming “Naples” processor. The performance, scalability and efficiency found at the core of Project Olympus and AMD’s “Naples” processor means the updated cloud hardware design can adapt to meet the application demands of global datacenter customers.
“Next quarter AMD will bring hardware innovation back into the datacenter and server markets with our high-performance ‘Naples’ x86 CPU, that was designed with the needs of cloud providers, enterprise OEMs and customers in mind,” said Scott Aylor, corporate vice president of enterprise systems, AMD. “Today we are proud to continue our support for the Open Compute Project by announcing our collaboration on Microsoft’s Project Olympus.”
Kushagra Vaid, general manager and distinguished engineer, Azure Cloud Hardware Infrastructure, Microsoft Corp. said, “Collaboration across the open source community is central to driving rapid innovation and creating a vibrant ecosystem for Microsoft’s Project Olympus. Partnership in design, such as our collaboration with AMD, shows how engaging early and often with hardware innovators can produce open source designs that are faster to market and customizable to enable flexibility and choice for end users.”
Designed to securely scale across the cloud datacenter and traditional on-premise server configurations, “Naples” delivers the “Zen” x86 processing engine in configurations of up to 32 cores. Access to vast amounts of memory, and industry-leading on-chip support for high-speed input / output channels in a single-chip SoC further differentiates “Naples” from anything else in the server market today. The first “Naples” processors are scheduled to be available in Q2, with expected volume availability building in the second half of 2017 through OEM and channel partners.
AMD will deliver two presentations on “Naples” and its datacenter strategy this week during the Summit. Scott Aylor, vice president of enterprise solutions will talk in the main hall on Wed., March 8th at 4:55 PM, while Dan Bounds, senior director of enterprise products, will deliver an engineering Tech Talk on Thurs., March 9th at 9:20 AM on the Expo Hall stage.
Shares of AMD are currently trading at $13.34, up $0.29 or 2.22%. AMD has a 1-year high of $15.55 and a 1-year low of $2.15. The stock’s 50-day moving average is $12.48 and its 200-day moving average is $9.28.
On the ratings front, AMD has been the subject of a number of recent research reports. In a report issued on February 23, Deutsche Bank analyst Ross Seymore maintained a Hold rating on AMD, with a price target of $9.00, which reflects a potential downside of 32% from last closing price. Separately, on February 22, Rosenblatt’s Hans Mosesmann initiated coverage with a Buy rating on the stock and has a price target of $16.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ross Seymore and Hans Mosesmann have a yearly average return of 29.6% and 11.3% respectively. Seymore has a success rate of 86% and is ranked #7 out of 4513 analysts, while Mosesmann has a success rate of 57% and is ranked #376.
Sentiment on the street is mostly neutral on AMD stock. Out of 21 analysts who cover the stock, 10 suggest a Hold rating , 9 suggest a Buy and 2 recommend to Sell the stock. The 12-month average price target assigned to the stock is $11.47, which implies a downside of 13% 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.