Micro Devices Inc.’s third-generation server chip, code-named Milan, is expected to drive more sales for the chip maker in the computer server market.
Earlier Monday, AMD AMD,
launched the 7-nanometer version of EPYC, its Zen 3-based processor, in a virtual display. The EPYC 7003 Series was designed for the physical server, high-performance computing and cloud market. AMD officials noted that it was also particularly critical for today’s diverse and remote workers. A group of new and existing customers embracing the chip includes Cisco Systems Inc. CSCO,
Tencent Cloud and AMZN at Amazon.com,
AWS.
Milan is pursuing the company’s second-generation EPYC server chip, often referred to as Rome, which helped AMD gain market share in the Intel-controlled server market. INTC years ago,
This next more powerful chip is expected to add further gains in AMD’s market share, possibly leading AMD into the double-digit figures.
“With the launch of EPYC Milan, We expect investor sentiment to remain due to the expectation that AMD’s server-CPU chip share will accelerate to a further 20-30% over the next 12-18 months, ”said Wells Fargo analyst Aaron Rakers, in a note to the client. He noted that, according to Mercury Research, AMD reached the end of 2020 with an estimated share of 9.2% of the x86 server market, for chips sent to customers.
AMD first launched the EPYC family in 2017, their reentry entering the server market after several years of absence. Serving chips are higher performance and more expensive than PC chips, and also more profitable. Investors have been banking on the upside for AMD as it gradually returns to the area long controlled by Intel.
Shares of AMD rose slightly Monday, closing at $ 82.50. The company plans to see more than 100 EPYC-based systems launched by the end of 2021. Intel is also expected to launch the highly anticipated Ice Lake processor in the coming weeks.