Advanced Micro Devices AMD recently expanded collaboration with Hewlett Packard HPE to provide support to the new modular and multi-protocol storage solution, HPE Alletra Storage MP, with AMD EPYC Embedded Series processors.
HPE’s storage solution uses a range of EPYC Embedded processor models with performance options ranging from 16 to 64 cores and a thermal design power profile ranging from 155W to 225W.
HPE Alletra Storage MP supports multiple storage protocols on the same hardware that can scale independently for performance and capacity. However, data is rapidly increasing in volume and complexity, creating new challenges for its customers.
AMD’s processors cater to this issue by combining speed and efficiency which together are designed to help reducing both overall system energy costs and TCO. Embedded EPYC processors enable HPE to lead towards advanced storage with new levels of performance and I/O agility in a power-optimized profile.
Advanced Micro Devices, Inc. Price and Consensus
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
Strong Product Portfolio to Aid AMD’s Prospects
AMD benefits from a strong product portfolio operating in Data Center, Client, Gaming and Embedded segments. Its shares have surged 73.1% year to date compared with the Zacks Computer and Technology sector’s rise of 36.6%.
Earlier this month, it launched Instinct MI300X accelerators which efficiently run large language model training and inference for generative AI workloads, thereby strengthening its portfolio for generative AI.
Strong demand for its EPYC, Radeon and Ryzen processors in various end-markets has been a major growth driver. Strengthening of PC and server markets as well as acquisitions of Xilinx and Pensando have acted in favour of the company.
For second-quarter 2023, AMD expects to witness growth in the Embedded segment partially offset by declines in the Client, Gaming and Data Center segments on a year-over-year basis.
AMD Faces Stiff Competition
AMD faces stiff competition in CPU, GPU and Embedded segments from enterprises like Intel Corporation INTC and NVIDIA NVDA which are affecting AMD’s product demand and growth prospects.
In May 2023, NVIDIA expanded its portfolio of graphics cards with GeForce RTX 4060 family of GPUs that delivers all the advancements of NVIDIA Ada Lovelace architecture including DLSS 3 neural rendering and third-generation ray-tracing technologies at high frame rates.
Intel continues to improve its competitive position in the overall PC market with the introduction of its 13th Gen Intel Core mobile processor followed by its new vPro platform powered by full lineup of 13th Gen Intel Core processors.
Shares of Intel and NVIDIA have increased 24.5% and 194.5% year to date, respectively.
This Zacks Rank #3 (Hold) company expects second-quarter 2023 revenues of $5.3 billion (+/-$300 million), indicating a year-over-year decline of 19%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $5.32 billion, implying a decline of 18.73% from the year-ago quarter’s reported figure.
The consensus estimate for second-quarter 2023 earnings remained unchanged at 57 cents per share in the past 30 days, suggesting a year-over-year decline of 45.71%.
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