Applied Micro Devices (AMD) is Quickly Gaining Market Share

02:54 08/08/2019

Applied Micro Devices AMD  could hit soon hit record highs.

After briefly gapping lower on trade war fears, AMD quickly refilled that gap at $33.77. 

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Now, should it break above triple top resistance, the stock could run to at least $40 a share.  In fact, today alone, the stock is up $4.50 on news that Google and Twitter are using the company’s newest data center processors. 

This follows news that AMD launched the second generation of its EPYC chips designed for high-performance uses in the cloud or inside large enterprises.  Granted, Intel dominates this industry with 98% market share, but AMD is quickly expanding. According to Atlantic Equities, as noted by CNBC, AMD’s share of the data center market could grow to 25% from just 2%.

Google also said it deployed the upgraded EPYC processors internally, and will add them to its cloud by 2020.  Twitter announced that, because of the power reductions that come with the new chips, it plans to reduce costs related to data center infrastructure by 25%, says CNBC.

AMD Chips Better than Intel

Better, according to AMD, its new server processor as better-performing than more expensive parts from Intel, says Bloomberg. 

In fact, AMD’s EPYC chip will have as many as 64 processing cores and be made with a new manufacturing technique called 7-nanometer, CEO Lisa Su said. The increased performance and efficiency will reduce costs to data-center owners by half. 

“We are just getting started in the server market,” Su said, as also noted by Bloomberg. “What you can expect from us is consistency. It is not just about one generation. It is about building a multi-generational road map.”

In our opinion, we wouldn’t be shocked to see AMD at $50 by early 2020.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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