Amd's shares soar with the launch of epyc rome

Shares of AMD were up 14% yesterday thanks to the positive news surrounding the company's next generation of EPYC Rome processors, which were recently announced.

AMD Shares Increase 14% Thanks to New EPYC Processors

EPYC Rome was announced with 19 variants based on TSMC's 7nm lithograph, and yesterday the firm took the stage to reveal the performance and price of the parts, in addition to making it clear that very important customers will be adopting them on their servers, such as This is the case of Google or Microsoft.

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AMD shipped some full 64-core EPYC Rome chips to a few technology media for a full series of benchmarks in performance, and the results are excellent: The new chips are offering a substantial leap in performance and efficiency, all at a reduced price..

Higher performance and energy efficiency

Performance and efficiency increase enough to attract some major customers, including Google, which is probably the company with the largest server infrastructure in the world. To get these Tier 1 infrastructure companies to invest in a whole new ecosystem of products, they take advantage of a major cost of total cost of ownership - the cost of living for a system, including the cost of the initial purchase, as well as ongoing energy costs.

Chances are Intel saw it coming, especially in its public struggle with its 10nm process, and perhaps that's why more than a year ago surprised many when its CEO said he feared AMD would take up to 20% of it. market share to your company. It is rare to see these opposing rivals admit something similar.

According to sources, Intel's server business is between $ 18 billion and $ 20 billion, and that AMD's total business, including Radeon GPUs, data center GPUs, Ryzens, EPYCs, PlayStation and Xbox SoC, is between 6, 000 and 7, 000 million dollars a year.

A little quick math tells us how important this foray into the server market would be. If we take Intel's numbers to the letter, that could put AMD's share at 15-20%. At the high end, this could mean $ 4 billion in additional revenue for AMD, and this is exactly why AMD's shares have soared today past 14% in its shares.

This is a sweet moment for AMD that it seems to be taking advantage of. Meanwhile, Intel is gearing up for a busy 2020 year, where a whole new Xeon lineup with processors up to 56 cores is planned. We will keep you informed.

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