AMD Chair and CEO Lisa Su has many reasons to be optimistic as she prepares to deliver the opening keynote address at Computex 2024, she has many reasons to be optimistic. The company’s recent progress and strategic advancements, highlighted by Chief Financial Officer Jean Hu at the recent JP Morgan Global Technology, Media, and Communications conference, paint a bright picture of AMD’s future.
One reason for this sense of optimism is the significant strides AMD has made in the server CPU market with the company capturing a substantial 33% market share in this highly competitive sector. As AMD prepares to launch its next-generation “Turin” processors, the company is expected to further boost its momentum.
AMD’s focus on the data center market is starting to pay off, with the company reporting an 80% year-over-year increase in data center business revenues in Q1 2024. The enterprise market is also showing strong demand due to the cost and power savings offered by AMD’s fourth-generation Epyc processors, which can provide the same compute power with 45% fewer servers compared to competing products from Intel. Major enterprise customers have already transitioned to an AMD-based infrastructure, and this trend is expected to continue with the upcoming Turin Epyc chips.
AMD’s new partnership with Microsoft also looks very promising. Announced last week, this partnership sees Microsoft offering virtual machine instances running the AMD MI300X GPU in its Azure cloud. Additionally, the Azure OpenAI Service is utilizing the MI300 accelerator and AMD’s ROCm software stack. This collaboration not only strengthens AMD’s position in the AI and cloud computing markets but represents a resounding vote of confidence in AMD’s technology.
AMD is also making solid progress in the desktop and laptop markets, achieving double-digit year-over-year growth for its desktop-centric Ryzen 8000 processors, nearly doubling revenue from its mobile platforms. The rollout of AI PCs in the second half of the year is seen as a significant inflection point that could rejuvenate the PC market, offering new opportunities for growth. However, AMD will have to battle hard with both Qualcomm, which is currently the “exclusive” processor provider for CoPilot+ PCs, and Intel to increase its market share.
With its strong momentum in the server, data center, enterprise, and mobile and desktop PC markets, AMD is well-positioned to continue its upward trajectory in the second half of this year and beyond. It will be interesting to learn more about the company’s latest plans when Lisa Su gives the opening Computex keynote at 9:30am on June 3.
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