AMD’s Share of the Server Chip Market Could Double, JPMorgan Says
https://www.barrons.com/articles/amd-stock-intel-jpmorgan-51656007925
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What would Andy Grove think of today's Intel? What would he think about the failed leadership of his friend Andy Bryant? Sad. Just....sad.
That's why I got out while I could. Good luck now with the recession/depression!
Ha oh man. This slomo train wreck has been going on since BK became CEO. Remember that? Nothing has changed. Every promise is 5 years away. Competition has eaten our breakfast and lunch. Morale and trust are non existent. Now it’s another round of ‘survive the layoffs’. If you haven’t switched jobs in the last two years while the gettin’ was good, then best of luck. You’re gonna need it.
JPMorgan is getting more optimistic over Advanced Micro Devices’ high-end chip business, citing strong results from the firm’s latest survey of technology buyers.
On Thursday, analyst Harlan Sur said the chipmaker’s solid product road map and the firm’s CIO survey suggest the company can achieve 30% to 40% market share in the server processor market over the next few years—up from 20% this year.
“CIO survey indicates steady interest / rising deployment of AMD EPYC-based servers for cloud and on-premise (enterprise) applications,” he wrote. “This implies continued strong AMD server revenue growth.”
AMD (ticker: AMD) makes processors that act as the main computing brains for personal computers, servers, and graphics cards. The corporate server and cloud-computing chip business is especially lucrative due to its higher price points and profit margins.
Sur cited how AMD’s server chip sales have quadrupled over the past two years, with revenue up 120% last year, according to his estimates. He expects AMD’s gains against its chief rival Intel to continue, based on the likely performance of its next server chip called “Genoa,” which is slated to be released in the fourth quarter this year.
Genoa “looks to remain very competitive from a price/power/performance perspective,” he wrote. “The recent acquisitions of Xilinx and Pensando will allow the company to expand its data center footprint and market opportunity even further.”
AMD should also benefit from Intel’s admission earlier this month that its next-generation server processor would ramp up later than planned because the product needed more validation time.