Advanced Micro Devices, Inc. (AMD:NASDAQ) announced Monday via press release that it is launching new processors for the data center. These new processors are designated the AMD EPYC 8004 Series. These new processors provide up to twice the performance with low power consumption, which could save their users thousands of dollars in electricity costs over the next five years. With this move, the company is fulfilling its stated guidance after the release of its second quarter 2023 financial results that the new products it will introduce in the second half of this year will help the company grow revenue at double the rate of its sales and earnings, which could reach $20 billion.
AMD’s data center CPUs are used in the cloud service provider’s (CSP) servers. AMD has a performance and price advantage over competitor Intel that allows AMD to continue to gain market share. Advanced Micro Devices, Inc. (AMD:NASDAQ) will also launch a new MI300 graphics processing unit (GPU) chip later this year to compete with dominant market leader NVIDIA by making this chipset more attractively priced. AMD has already partnered with Microsoft and Meta, while Amazon sells AMD chips on its e-store. According to banking institutions and multinational investment corporations, the stock price can be expected to rise in the short to medium term investment horizon, where the average target price has been set at $140.25 per share.
