The third generation server chip from Advanced Micro Devices Inc., codenamed Milan, is expected to generate more revenue for the chip maker in the computer server market.
Early Monday, AMD
The 7-nanometer version of EPYC, its Zen 3-based processor, was presented in a virtual presentation. The EPYC 7003 series was developed for the corporate server, high-performance computing and cloud market. AMD executives realized this is especially important for today's changing and remote workforce. One of a group of new and current customers who are using the chip is Cisco Systems Inc.
Tencent Cloud and Amazon.com
Milan is a continuation of the company's second generation EPYC server chip, often referred to as Rome, which helped AMD gain market share in the server market that has been owned by Intel Corp. for years. is dominated.
This next, more powerful chip is expected to further fuel AMD's market share gains and potentially lead AMD in double digits.
"With the launch of EPYC Milan, we expect investor sentiment to continue to reflect expectations that the proportion of AMD server CPU chips will increase to 20 to 30% in the next 12 to 18 months," said Aaron Rakers, analyst at Wells Fargo a note to customers. According to Mercury Research, AMD ended 2020 with approximately 9.2% of the x86 server market for chips shipped to customers.
AMD first launched the EPYC family in 2017 and re-entered the server market after several years of absence. Server chips are more powerful and more expensive than PC chips and also more profitable. Investors have been betting on AMD as it is gradually moving back into the arena that Intel has long dominated.
AMD shares rose slightly on Monday to close at $ 82.50. The company expects more than 100 EPYC-based systems to hit the market by the end of 2021. Intel is also expected to launch its highly anticipated Ice Lake processor in the coming weeks.