Advanced Micro Devices will soon dive into the metaverse.
The chip giant stated its EPYC chips were chosen by Meta (previously known as Facebook) to assist in powering its centers on Monday at its virtual Accelerated Data Center debut event. The chip maker explained the two companies had worked together to create a power-efficient, high-performance processor based on the AMD’s 3rd Generation EPYC processor.
AMD stock price jumped higher by 10% in afternoon trading.
The high-profile win was accompanied by announcements from the chip maker, including some specifics around future EPYC processors with code names “Bergamo” and “Genoa.” The Genoa processor was dubbed the “world’s best performance processor for general purpose computing,” by AMD.
Su told Yahoo Finance Live we’re living through a high-performance computing “megacycle” that is showing no signs of slowing down.
AMD is consistently one of the hottest technology stocks in the market as it wrestles market shares away from its rival Intel.
Shares of AMD have risen 65% year to date, outpacing the Nasdaq Composite’s 24% gain. Intel’s share price has risen 2% on the year, while Nvidia has ballooned a whopping 127%.
AMD’s third quarter performance may help to explain the stock’s rapid ascent.
Sales have risen 54% from a year ago all the way up to $4.3 billion. Earnings per share jumped 134% year-over-year.
“We think AMD will continue to boost material server/PC share in 2021/2022 that will be driven by performance leadership while Intel keeps struggling on 10 and 7nm,” stated Barclays analyst Blayne Curtis in a recent memo to clients.
Curtis rated AMD’s stock at an Overweight (equivalent to a Buy rating) with a $135 price target.
AMD has had an excellent past two years after the debut of its very popular Ryzen CPUs. Their new line of products took the industry by storm given their price range and performance compared to rival Intel. Meanwhile, Facebook has suffered a storm of controversy after whistleblowers revealed the company maintains a “whitelist” of celebrities and political insiders who are allowed to break the company’s speech policies.
Author: Steven Sinclaire