Advanced Micro Devices, Inc. (NASDAQ:AMD) took a significant step into the server and datacenter market with its most detailed look yet at the upcoming high-performance CPU for servers, codenamed “Naples”. Purpose-built to disrupt the status-quo and to scale across the cloud datacenter and traditional on-premise server configurations, “Naples” delivers the highly regarded “Zen” x86 processing engine in industry-leading configurations of up to 32 cores. Superior memory bandwidth and the number of high-speed input / output channels in a single-chip further differentiate “Naples” from anything else in the server market today. The first processors are scheduled to be available in Q2 2017, with volume availability building in the second half of the year through OEM and channel partners.
“Today marks the first major milestone in AMD re-asserting its position as an innovator in the datacenter and returning choice to customers in high-performance server CPUs,” said Forrest Norrod, senior vice president and general manager, Enterprise, Embedded and Semi-Custom business unit, AMD. “‘Naples’ represents a completely new approach to supporting the massive processing requirements of the modern datacenter. This groundbreaking system-on-chip delivers the unique high-performance features required to address highly virtualized environments, massive data sets and new, emerging workloads.”
The new AMD server processor 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.
“It is exciting to see AMD back in the server conversation with a new CPU and a sound strategy for why it is the right processor for the modern datacenter and the cloud computing era,” said Matt Eastwood, senior vice president, Enterprise Infrastructure and Datacenter, IDC. “Looking at the product details announced today, it sounds like a compelling combination that will give IT buyers a unique new option to consider when making their next upgrade.”
- A highly scalable, 32-core System on Chip (SoC) design, with support for two high-performance threads per core
- Industry-leading memory bandwidth, with 8-channels of memory per “Naples” device. In a 2-socket server, support for up to 32 DIMMS of DDR4 on 16 memory channels, delivering up to 4 terabytes of total memory capacity.
- The processor is a complete SoC with fully integrated, high-speed I/O supporting 128 lanes of PCIe® 34, negating the need for a separate chip-set
- A highly-optimized cache structure for high-performance, energy efficient compute
- AMD Infinity Fabric coherent interconnect for two “Naples” CPUs in a 2-socket system
- Dedicated security hardware
AMD will deliver two presentations on its datacenter strategy and upcoming products this week during the Open Compute Summit. Scott Aylor, vice president of enterprise solutions will talk in the main hall on Wed., March 8th at 4:55 PM PST, while Dan Bounds, senior director of enterprise products, will deliver an engineering Tech Talk on Thurs., March 9th at 9:20 AM PST on the Expo Hall stage.
Shares of Advanced Micro Devices closed yesterday at $13.04, up $0.01 or 0.08%. 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 $12.46 and its 200-day moving average is $9.24.
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 31% from last closing price. On February 22, Rosenblatt Securities’ 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 29.5% and 11.3% respectively. Seymore has a success rate of 86% and is ranked #7 out of 4511 analysts, while Mosesmann has a success rate of 57% and is ranked #383.
Overall, 2 research analysts have rated the stock with a Sell rating, 10 research analysts have assigned a Hold rating and 10 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $11.50 which is 11.8% under where the stock closed yesterday.
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.