SAN FRANCISCO - Advanced Micro Devices, Inc. (NASDAQ:AMD) has introduced a suite of new computing solutions aimed at advancing artificial intelligence (AI) applications, including the 5th Gen AMD EPYC server CPUs, AMD Instinct MI325X accelerators, and AMD Ryzen AI PRO processors. The announcement was made on October 10, 2024, underscoring AMD's commitment to the AI computing era.
The new AMD EPYC 9005 Series processors, based on the Zen 5 architecture, feature up to 192 cores and are available from today in platforms from leading OEMs and ODMs. AMD has also launched the AMD Instinct MI325X, which is designed to deliver high performance and memory capabilities for demanding AI workloads. Further, AMD revealed upcoming AMD Instinct MI350 series accelerators, expected in the second half of 2025, and AMD Instinct MI400 Series accelerators, planned for 2026.
AMD's ROCm open source AI software has also seen improvements, with the company reporting that over one million AI models now run seamlessly on AMD Instinct, a threefold increase since the MI300X series launch.
The company's expanded networking portfolio includes the AMD Pensando Salina DPU and AMD Pensando Pollara 400 NIC (NASDAQ:EGOV), aimed at enhancing AI infrastructure performance and efficiency.
AMD's Chair and CEO, Dr. Lisa Su, highlighted the growth opportunities for AMD in the data center and AI market, which is expected to reach $500 billion by 2028. She emphasized AMD's momentum with EPYC and AMD Instinct processors across a growing customer base.
In terms of enterprise AI, AMD has unveiled the Ryzen AI PRO 300 Series processors, which power the new Microsoft (NASDAQ:MSFT) Copilot+ laptops designed for enterprise use. These processors offer advanced security features and manageability for business users.
The press release also noted collaborations with industry leaders such as Google (NASDAQ:GOOGL) Cloud, Microsoft, and Meta (NASDAQ:META), who are utilizing AMD's AI solutions. For instance, Google will offer EPYC 9005 Series-based VMs in early 2025, and Microsoft's CEO Satya Nadella discussed the use of MI300X accelerators in Microsoft Azure.
AMD's advancements in AI were presented alongside partners like Databricks and Oracle (NYSE:ORCL) Cloud Infrastructure, showcasing the seamless integration and performance enhancements of AMD hardware and software in various applications.
The information in this article is based on a press release statement from AMD.
In other recent news, Advanced Micro Devices (AMD) has made significant strides in AI technology with the release of its 5th Gen AMD EPYC processors and the unveiling of its third-generation Ryzen AI PRO 300 Series mobile processors. These processors are designed to enhance performance and efficiency for various workloads, with the top-end 192-core EPYC 9005 Series processor delivering up to 2.7 times the performance compared to competing products. AMD also introduced a suite of products aimed at enhancing AI infrastructure performance, including the AMD Instinct MI325X accelerators, expected to start shipping in late 2024.
In addition, AMD has announced a strategic collaboration with Oracle Cloud Infrastructure, with AMD's Instinct MI300X accelerators set to power OCI's new AI supercluster. Analysts from Cantor Fitzgerald and Goldman Sachs (NYSE:GS) maintained positive ratings on AMD, citing these developments.
AMD's Q2 revenues surpassed Street consensus, reaching $5.835 billion, with its data center segment showing record revenue growth of 115% to $2.8 billion. However, despite AMD's strides in the AI chip market, it is not expected to significantly affect Nvidia’s data center revenue, as the demand for AI chips currently surpasses supply. These recent developments underscore AMD's commitment to providing high-performance computing solutions for AI applications.
InvestingPro Insights
AMD's recent announcements in AI computing solutions align well with its market position and financial performance. According to InvestingPro data, AMD boasts a substantial market capitalization of $265.33 billion, reflecting investor confidence in its growth potential. This is particularly relevant given the company's focus on the expanding AI market, which AMD's CEO projects to reach $500 billion by 2028.
InvestingPro Tips highlight AMD as a "prominent player in the Semiconductors & Semiconductor Equipment industry," which is evident from its strategic product launches and partnerships with tech giants like Google, Microsoft, and Meta. The company's revenue of $23.28 billion in the last twelve months, with a 6.4% growth rate, underscores its strong market presence and ability to capitalize on emerging technologies like AI.
Another InvestingPro Tip notes that AMD's "net income is expected to grow this year," which aligns with the company's push into high-value AI computing solutions. This growth expectation is further supported by AMD's gross profit margin of 51.42%, indicating efficient operations and potential for increased profitability as it expands its AI offerings.
It's worth noting that AMD's stock has shown a strong performance, with a 56.88% return over the past year. This robust growth reflects investor optimism about AMD's strategic direction, particularly its focus on AI and data center markets.
For readers interested in a more comprehensive analysis, InvestingPro offers 15 additional tips for AMD, providing deeper insights into the company's financial health and market position.
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