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Can AMD Establish Itself In The Datacenter Accelerator Market?

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Can AMD Establish Itself In The Datacenter Accelerator Market?

Wells Fargo analyst David Wong reiterated an Outperform rating on Advanced Micro Devices, Inc. (NASDAQ: AMD) with a $15 price target, following an examination of the company’s moves into the datacenter accelerator space.

AMD announced the release of its new EPYC chip on June 22, to which the market reacted positively. The chip is reported to be both cheaper and faster than Intel Corporation (NASDAQ: INTC)’s current Broadwell server processors, although some analysts have said to take that with a grain of salt until the two can be tested side-by-side.

Wong also noted that AMD’s EPYC chips are expected to be comparable to Intel’s Skylake processors, which are scheduled to launch on July 11.

Radeon Vego Frontier Edition

AMD announced another development on Tuesday: its Radeon Vego Frontier Edition accelerator, which was made immediately available. The chip is targeted towards advanced game design, machine learning and heavy photo realistic workloads.

“We think combination of new accelerator products and the potential to gain momentum in the server processor market may help AMD establish itself in the datacenter accelerator market,” said Wong in a note.

The company has been in the space for some time, but was prevented from having a large presence because of its focus in recent years on stabilizing its financials and core high-volume business.

The analyst expects revenues from AMD’s accelerator ventures to be relatively small in the near term.

That said, the market could provide an area for solid growth in the future.

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Latest Ratings for AMD

DateFirmActionFromTo
Oct 2019UpgradesHoldBuy
Oct 2019MaintainsNeutral
Oct 2019MaintainsNeutral

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Posted-In: David Wong EPYC Radeon Radeon Vego FrontierAnalyst Color Reiteration Analyst Ratings Tech Best of Benzinga

 

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