Advanced Micro Devices (NASDAQ:AMD) is reaping the rewards of its robust product portfolio and an expanding customer base. The company recently made significant inroads in the gaming industry with the launch of the AMD Radeon RX 7900M, a laptop GPU, and the Alienware m18 laptop.
Not limited to gaming, AMD continues to make significant strides in the data center market. They achieved this by introducing the Ryzen Threadripper PRO 7000 WX-Series processors, tailored for professionals and businesses. These processors offer exceptional performance and security. Additionally, they reintroduced the Ryzen Threadripper 7000 Series processors, catering to high-end desktop users with remarkable multi-core performance, supporting up to 64 cores.
In the enterprise data center arena, AMD is strengthening its presence through the utilization of fourth-generation EPYC CPUs and Pensando data processing units (DPUs). AMD, in collaboration with its partners, is actively providing solutions that enhance data center consolidation. Key partnerships with industry leaders like Dell Technologies, Microsoft, Amazon Web Services (AWS), Alibaba, and Oracle have played a pivotal role in their success.
Cloud giants such as Microsoft, AWS, Alibaba, and Oracle adopted Genoa in the second quarter of 2023. Microsoft Azure, in particular, announced the introduction of the first Genoa-X HPC instances, offering more than five times the performance in technical computing workloads compared to the previous generation.
Dell is also leveraging AMD EPYC fourth-generation CPUs in its PowerEdge C6615 server. When combined with OpenManage Enterprise software, these Dell servers enable cloud service providers to efficiently monitor their systems and deliver computing services more intelligently.
To further bolster its capabilities, AMD recently acquired Nod.ai, a compiler-based automation software provider. This acquisition is set to enhance AMD’s capacity to develop software-driven technology, expediting the deployment of AI solutions across various product lines, including data center accelerators, processors, and GPUs. Furthermore, this move is poised to bolster AMD’s competitiveness against NVIDIA in the software market, given NVIDIA’s CUDA toolkit for high-performance GPU-accelerated applications.
The growing adoption of fourth-generation EPYC processors by enterprises has been a boon. In the second quarter of 2023, adoption of these CPUs nearly doubled sequentially, driven by cloud providers expanding their deployments to support internal infrastructure and public instance offerings.
Presently, there are over 670 AMD-powered cloud instances available publicly, and this number is projected to grow by 30% to 900 by the end of 2023, primarily due to the adoption of Genoa. The availability of Bergamo, a key factor in this growth, is pivotal as leading server providers such as Dell, HPE, Lenovo, and Supermicro are preparing to launch new Bergamo-based platforms in the third quarter.
All these factors collectively contribute to a positive outlook for AMD in the near term. The company anticipates third-quarter 2023 revenues of $5.7 billion (+/-$300 million), indicating year-over-year growth of 2.5% and a sequential increase of 6.5%.
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