AMD lands Meta as customer, takes aim at Nvidia with new chips

silversurfer

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Advanced Micro Devices Inc (AMD.O) on Monday said it has won Meta Platforms Inc (FB.O) as a data center chip customer, cementing some of its gains against Intel Corp (INTC.O).

It also announced a range of new chips aimed at taking on larger rivals such as Nvidia Corp (NVDA.O) in supercomputing markets, as well as smaller competitors including Ampere Computing in the cloud computing market.

After years of trailing the much larger Intel in the market for x86 processor chips, AMD has steadily gained market share since 2017, when a comeback plan spearheaded by Chief Executive Lisa Su put the company on a course to its present position of having faster chips than Intel.

AMD now has nearly a quarter of the market for x86 chips, according to Mercury Research.

After securing Meta, the company formerly known as Facebook, as a customer, AMD now has deals in place with many of Intel's largest customers. It also has deals with Alphabet Inc's (GOOGL.O) Google Cloud, Amazon.com's (AMZN.O) Amazon Web Services and Microsoft Corp's (MSFT.O) Azure.

But AMD on Monday also announced plans to take on rivals beyond Intel. The company announced a chip called the MI200 which is an "accelerator" designed to speed up certain tasks like machine learning and artificial intelligence.

The new AMD chip is designed to take on Nvidia's A100 chip, which, along with other chips designed to speed up artificial intelligence, has helped make Nvidia the most valuable U.S.-listed semiconductor company.
 

cruelsister

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AMD now has about 25% of the server market formerly totally dominated by Intel (which still can't figure out how to move from the 14nm platform).

Fun Fact- Lisa Su became the CEO of AMD in 2014. At that time the company (headed by incompetents) was busy firing R&D and production staff. Looked like it may be bought out or go bankrupt. Company had a total market capitalization of 2 billion USD (stock price-$2/share). With today's news the market cap of AMD has swelled to 180 billion USD (stock price-$150/share).

Girl knows what she is doing1
 

Fel Grossi

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Fortunately, I added AMD to my portfolio last year and have been slowly acquiring shares. I wish I had bought it sooner, but better late than never. buy and hold ✌
 

cruelsister

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Just as a sidenote, AMD (under the direction of the arch moron, former CEO Hector Ruiz) started their own Fab plant, GlobalFoundries in 2009. AMD then divested all interest in it a few years later, it still existed and went public last week (NASDAQ:GFS). They still supply I/O die for AMD's Ryzen and Epyc processors (chips themselves made by Taiwan Semi) as well as stuff for Qualcomm and Broadcom).

With fab plants in New York (and Germany and Singapore), it can viewed as a possible long term hold (and a rocket if China invades Taiwan).
 

The_King

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AMD Stock Jumps 10% on Monday, Propelled by Meta (Facebook) Deal

AMD on Monday made several major announcements covering different parts of its enterprise product roadmap. These included the 3rd Gen EPYC "Milan-X" processors with 3D Vertical Cache memory; Instinct MI200 CDNA2 compute accelerators, and announcements related to next-generation "Zen 4" based EPYC "Genoa" and "Bergamo" processors that come with core counts as high as 128. The company's stock rallied up to 12%, closing up 10%, which left many in the tech community scratching their heads. It turns out that the AMD-Meta deal has a profound impact on investors.

Meta, the holding company of Facebook covering all its businesses, aspires to be a major cloud solutions provider on par with Microsoft Azure, AWS, and Google Cloud. The deal could see Meta buying large stocks of AMD processors and compute accelerators to drive its next-gen server infrastructure. Sales of enterprise processors doubled year-over-year for AMD, and EPYC processors now account for 20% of the company's revenues.