SAN FRANCISCO - Advanced Micro Devices, Inc. (NASDAQ: NASDAQ:AMD) announced today the release of its 5th Gen AMD EPYC processors, which are designed to provide unmatched performance and efficiency for a wide array of data center workloads. The new processors, using the Zen 5 core architecture, are compatible with the SP5 platform and offer a variety of core counts ranging from 8 to 192.
The top-end 192-core EPYC 9005 Series processor delivers up to 2.7 times the performance compared to competing products, while the 64-core AMD EPYC 9575F is specifically tailored for AI solutions requiring high CPU capabilities. The EPYC 9575F boosts up to 5GHz, surpassing the 3.8GHz offered by its competitors, and provides up to 28% faster processing to support demanding AI workloads.
Dan McNamara, senior vice president and general manager of AMD's server business, emphasized the company's commitment to meeting the needs of the data center market. He highlighted AMD's track record of on-time roadmap execution and the trust customers place in AMD for performance, innovation, and energy efficiency.
The new processors are engineered to handle various server workloads, from corporate AI initiatives to large-scale cloud infrastructures. The Zen 5 core architecture offers up to 17% better instructions per clock for enterprise and cloud workloads, and up to 37% higher IPC in AI and high-performance computing compared to the previous generation.
AMD claims significant performance improvements over the Intel (NASDAQ:INTC) Xeon 8592+ CPU-based servers, with up to 4 times faster results in business applications like video transcoding, and up to 3.9 times quicker insights for science and HPC applications.
The 5th Gen AMD EPYC processors also aim to provide fast deployment and insights for AI, with the 192-core EPYC 9965 CPU achieving up to 3.7 times the performance on AI workloads. The AMD EPYC 9575F can help a 1,000 node AI cluster drive up to 700,000 more inference tokens per second, enabling more efficient AI processing.
By transitioning to data centers powered by these new processors, AMD suggests customers can achieve substantial performance for various workloads while using an estimated 71% less power and ~87% fewer servers.
The full lineup of 5th Gen AMD EPYC processors is available now, with support from major server manufacturers and cloud service providers, offering an easy upgrade path for organizations seeking compute and AI leadership.
This announcement is based on a press release statement from AMD.
In other recent news, Advanced Micro Devices (AMD) has revealed its third-generation Ryzen AI PRO 300 Series mobile processors, boasting significant AI performance improvements. The new processors are expected to hit the market later this year. In addition, AMD has introduced a suite of products aimed at enhancing AI infrastructure performance, including the AMD Instinct MI325X accelerators, expected to start shipping in late 2024.
These announcements follow AMD's strategic collaboration with Oracle (NYSE:ORCL) Cloud Infrastructure (OCI), where AMD's Instinct MI300X accelerators will power OCI's new AI supercluster. Analysts from Cantor Fitzgerald and Goldman Sachs (NYSE:GS) have maintained positive ratings on AMD, highlighting these significant 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. 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 reflect AMD's commitment to providing high-performance computing solutions for AI applications.
InvestingPro Insights
AMD's latest announcement of its 5th Gen EPYC processors aligns well with the company's strong market position and financial performance. According to InvestingPro data, AMD boasts a substantial market capitalization of $266.13 billion, reflecting investor confidence in its growth potential and technological advancements.
The company's revenue growth of 6.4% over the last twelve months and a quarterly growth of 8.88% in Q2 2024 indicate a steady expansion, which is likely to be further bolstered by the release of these high-performance processors. This growth trajectory is supported by an InvestingPro Tip suggesting that AMD's net income is expected to grow this year.
AMD's gross profit margin of 51.42% demonstrates its ability to maintain profitability while investing in cutting-edge technology like the new EPYC processors. This is particularly important as the company positions itself to capture a larger share of the AI and data center markets.
InvestingPro Tips also highlight that AMD is a prominent player in the Semiconductors & Semiconductor Equipment industry, which is evident from its leadership in processor technology. The company's strong return over the last year, with a 56.88% price total return, reflects market enthusiasm for AMD's innovations and growth prospects.
For investors seeking more comprehensive analysis, InvestingPro offers 15 additional tips for AMD, providing a deeper understanding of the company's financial health and market position.
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