Advanced Micro Devices, Inc. (NASDAQ:AMD) revealed its long-term financial targets on Tuesday but the highlight of the day was the launch of its EPYC Server CPU.
The launch of the EPYC server CPU was a big step for AMD because it was one of the most competitive server CPU that the company has ever announced. The processor bears the EPYC brand but it is also known as the Ryzen Threadripper whose features include 15 cores and 32 threads. The new processor is an important launch for the firm because it is expected to pave way for the next generation of CPUs, server lines and GPUs that have migrated to the 7nm and 7nm+ process nodes.
AMD’s new processor allows it to take an aggressive approach to the server market
The migration is expected to be a key part of AMD’s plan for future growth and especially towards attracting business customers who have previously been elusive. The new architecture will allow the company to compete more effectively against NVIDIA Corporation (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC). The two firms are AMD’s main rivals and have been very dominant especially in the server market. The EPYC Server CPU will allow the firm to close the gap and secure a long term presence as a strong player in the server market.
“Immersive and instinctive computing will transform all of our daily lives,” stated Lisa Su, the CEO of AMD.
Su further pointed out that a lot of data and machine learning algorithms go into immersive computing and that the process is rapidly evolving and this calls for high-performance computing. Despite announcing the new EPYC server processors, the company’s stock took a dive and lost by about 11 percent on Wednesday. This was after a previous 11.5 percent rise prior to analyst day after reports came in that Intel would license intellectual property from AMD’s GPU. Unfortunately, AMD did not make any comments about the reports from Intel. It will be exciting to see how the company’s new server processors will allow it to secure more future growth in the server market.
AMD stock closed the latest trading session on Wednesday at 11.20.