Ever since it was founded in 1969, Advanced Micro Devices, Inc. (NASDAQ: AMD) have competed with Intel Corp. (NASDAQ: INTC) as the world’s leader in microprocessor innovation. Although Intel Corp have dominated the competition for the last three decades, AMD’s unveiling of the EPYC 7000-series processors may disrupt Intel Corp’s leading status in the microchip market.
Before the release of AMD’s EPYC chip, Intel’s Xeon microchip has previously become a staple in data centers around the world for numerous years. Although intel nearly monopolized this market, the EPYC may challenge the Intel’s near monopoly with power efficiency and cheaper prices.
Rosenblatt Securities Hans Mososmann recently reported “Firstly, the amusing consensus view the day after the EPYC launch on the 20th is that is a solid product (enough to gain some incremental share), and that only time can tell how it all plays out as Intel responds.”
According to Forbes, AMD’s new processors have the capability to power between 8 CPU cores and 2.1GHz at 180W TDP to 32 cores and 2.2 GHz at 180 W TDP. The EPYC will also include silicon-level security, protecting users from data attacks with security with full memory encryption. Despite that these chips will perform similarly to the Xeon, AMD’s processor will cost $400 to $4,000, and allow the company to sell high margin server chips for the first time in almost ten years.
Mososmann added that Intel has “been caught by surprise” currently dealing with a dispute Nvidia (NASDAQ: NVDA) and may have to cut prices saying “there is not competitive response we see from Intel that won’t destroy its historical pricing model.” Mosesmann rated AMD stocks as a “buy” with a target price range of $20 per share.
In order to maximize efficiency for growing computer needs for consumers, major manufacturers and distributers such as Microsoft, HPE, Dell, and many other tech giants are eager to utilize EPYC technology. To power its Azure Cloud, Microsoft’s Azure Corporate Vice President Girish Bablani said “To power Azure, we require the most cutting-edge infrastructure and the latest advances in silicon which is why we intend to be the first global cloud prover to deliver AMD EPYC”.