According to a report from the Register, Advanced Micro Devices, Inc. (NASDAQ:AMD) claims a significant milestone, holding a 33% share in the server CPU market as it gears up for the launch of its next-generation “Turin” processors. The company also unveils a GPU roadmap post the MI300 product line.
Speaking at the JP Morgan Global Technology, Media, and Communications conference, AMD’s CFO, Jean Hu, underscored the company’s strides in servers, CPUs, and GPUs. This positive news propelled the stock higher on Tuesday.
Hu highlighted AMD’s strategic partnerships with Microsoft Corp (NASDAQ:MSFT) for virtual machine instances utilizing AMD MI300X GPUs in the Azure cloud. Additionally, she pointed out AMD’s robust growth in server CPUs and the desktop/laptop segments, achieving strong double-digit growth.
Emphasizing AMD’s focus on power efficiency and cost-effectiveness, Hu stressed its appeal to enterprises dealing with power and space limitations. Major clients such as American Express Co (NYSE:AXP), Shell Plc (NYSE:SHEL), and STMicroelectronics N.V. are making the switch to AMD-based infrastructure.
Hu announced plans for the launch of a next-generation AI PC in the latter half of the year, poised to potentially revitalize the PC market. She also hinted at AMD’s potential re-entry into the Arm Holdings Plc (NASDAQ:ARM) market, leveraging existing capabilities and IP blocks to meet customer demands.
AMD sees promising long-term growth opportunities in the embedded processor market, particularly through synergies with Xilinx. Hu also highlighted the company’s strong performance in the desktop and laptop markets.
While analysts anticipate AMD and its peers to drive optimism in the semiconductor industry post their earnings beat, caution is advised due to potential MI300 supply constraints, weaknesses in the gaming segment, and competitive pricing from Nvidia Corp (NASDAQ:NVDA).
AMD’s stock has surged by 33% in the past 12 months.
Featured Image: Megapixl
Author Faith Yakubu 
