AMD Stock Price Up After Server Event
Should Intel worry?
Advanced Micro Devices (AMD) hosted an event in San Francisco on Election Day to announce some new products coming from the company. What is usually a mundane event was something of a spectacle this year, as Lisa Su emerged to the stage confident that AMD can beat Intel.
AMD’s CEO, Lisa Su, said that AMD was excited about the “Next Horizon” event and the next-generation of chips. The next generation of chips will also be built around the Zen architecture, which brought AMD back into the green and allowed it to the company to grow. Arguably, the Zen architecture was one of the best things to happen to the company in recent times.
The ongoing theme of the event was that AMD is “still at the beginning of that journey”, as Su repeated in the presentation. Executives make it clear that AMD intends to remain competitive in the micro-devices market, unlike in previous years where it would make gains, then plummet shortly after.
As the event came to an end, Su returned to the stage on final time to show off the latest AMD chip for servers, to which the crowd responded positively. The AMD stock price has been rising this week, but down across the month.
The second-generation of AMD EPYC chip for servers, called ROME, is scheduled for a 2019 release. When looking at the Rome chip compared to Intel’s, AMD’s technology is ahead. AMD did not give any specific dates regarding the chip’s release. AMD did demonstrate that the new Rome chip is twice as powerful as the current-gen chip, the Naples chip. AMD also showed that the upcoming Rome chip is more powerful than both of Intel’s current generation chips.
AMD stock has transformed in recent times, becoming a heavyweight in the semiconductor market. To conclude, AMD seems confident that it can make a significant dent to Intel’s market share and produce better server chips.
AMD Stock Price Analysis
NASDAQ: AMD stock price increased by around 4 percent on Tuesday after the company announced that Amazon’s cloud servers would begin using Epyc data chips for their cloud solutions. The announcement was made by Lisa Su at the “New Horizon” event.
As more cloud-computing companies get onboard with AMD chips, revenues will increase causing the AMD share price to hike. For investors, this makes AMD a potential long-position.
Intel stock price fell slightly after AMD made the Amazon announcement.
Currently, Intel have 99% of the market share for cloud data centers, with a competitor like AMD, Intel can’t become complacent.
AMD doesn’t manufacture its chips, it designs them and contracts companies such as Taiwan Semiconductor to produce them. Taiwan Semiconductor has recently make changes to its production so it can print circuits on chips 7 nanometers if it needed to.
The advancements of Taiwan Semiconductor are benefitting AMD massively. These improvements means that AMD can compete with Intel price-wise and also on the innovation front. Apple also works with Taiwan Semiconductor.