AMD stock: Analysts expect new data center gains after ‘impressive’ Genoa launch

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Advanced Micro Devices (NASDAQ:AMD) launched the 4th generation of its EPYC server processors yesterday. AMD said it has already secured Google (NASDAQ:GOOGL), Oracle (NYSE:ORCL), and Microsoft (NASDAQ:MSFT), among others, as customers for “Genoa” server processors.

The 4th generation of server processors comes about 5 years since AMD launched its first EPYC data center chip, called “Naples”, which was then followed by “Rome” and “Milan”. The company said that Genoa will deliver a significant improvement in performance while also being more energy efficient.

“What that means for enterprises and for cloud data centers is that it translates into lower capex, lower opex, and lower total cost of ownership,” said CEO Lisa Su.

AMD has already started shipping Genoa chips to strategic partners and expects to ramp production into the year-end. Here’s what Wall Street analysts, who attended the event, have to say about the Genoa launch.

Stifel: “We expect Genoa and Milan to exist in different workloads in the medium-term and we expect AMD’s expanding technology portfolio (FPGAs, DPUs, SmartNIC, GPUs) to drive continued market share gains. We expect this dynamic, coupled with continued TAM expansion, to drive faster than market Data Center Segment growth for AMD.”

Deutsche Bank: “AMD delivered yet another impressive family of server CPU products, helping to extend and solidify its server CPU product leadership vs its competitor INTC, which continues to recover from past missteps.”

BMO: “We are very positive on AMD’s ability to continue to take share in the datacenter market.”

Morgan Stanley: “AMD delivers on the roadmap as promised. Early benchmarks indicate that the company retains performance leadership over both current and next-gen competitor product, pointing to further data center share gains, consistent with our OW thesis.”