Advanced Micro Devices said Monday that it has won the meta as a data center chip customer, sending AMD shares up more than 11 percent as it consolidated some of its gains against Intel.
It also announced a range of new chips aimed at taking on larger rivals such as Nvidia in the supercomputing markets, as well as smaller competitors, including Ampere Computing, in the cloud computing market.
After years of trailing the much larger Intel in the market for x86 processor chips, AMD has steadily gained market share since 2017, when a comeback plan led by chief executive Lisa Su saw the company keep faster chips. put in its current position. of Intel.
According to Mercury Research, AMD now has about a quarter of the market for x86 chips.
After acquiring Meta, the company formerly known as Facebook, as a customer, AMD has struck deals with many of Intel’s biggest customers. It also has deals with Alphabet’s Google Cloud, Amazon’s Amazon Web Services and Microsoft’s Azure.
Christopher Rowland, a semiconductor analyst at Susquehanna International Group, said in a note to investors that AMD appears to be winning a portion of Meta’s increased spending as it lays out plans to build virtual online worlds.
“Investors are now trying to identify the big hardware beneficiaries of this capex, and today’s announcement may suggest that AMD is winning a healthy share,” Rowland wrote.
AMD also announced plans on Monday to take on rivals beyond Intel. The company announced a chip called the MI200, an “accelerator” designed to speed up certain tasks such as machine learning and artificial intelligence.
The new AMD chip is designed to take on Nvidia’s A100 chip, which, along with other chips designed to accelerate artificial intelligence, have helped make Nvidia the most valuable US-listed semiconductor company.
AMD said Oak Ridge National Laboratory in Tennessee will use the new chip in its “Frontier” supercomputing system.
AMD also took aim at smaller rivals. The company announced a new central processor called “Bergamo” that will ship in the first half of 2023. The chip will have 128 computing cores, which is useful for cloud computing companies that rent their chips on a core-by-core basis. external customer.
Ampere Computing, a startup founded by former Intel executives, is following a similarly high-core-count strategy and this year signed on to Oracle’s cloud service as a customer.
© Thomson Reuters 2021