Advanced Micro Devices (AMD) is about to enter the metaverse.
The chip giant said its EPYC chips were selected by Meta (formerly known as Facebook) to help power its data centers at its virtual Accelerated Data Center Premiere event Monday. AMD explained the two companies worked together to develop a high-performance, power-efficient processor based on the company’s 3rd Generation EPYC processor.
The high-profile win accompanied several announcements from AMD, including some specifics around upcoming EPYC processors codenamed “Genoa” and “Bergamo.” AMD dubbed the Genoa processor as the “world’s highest performance processor for general purpose computing.”
“We are in a high-performance computing megacycle that is driving the demand for more computer to power the services and devices that impact every aspect of our daily lives,” AMD CEO Dr. Lisa Su said in a statement.
AMD continues to be one of the hottest tech stocks in the market as it wrestles market share away from rival Intel.
Shares of AMD are up 49% year to date, out-performing the Nasdaq Composite’s 24% gain. Intel’s stock is up 2% on the year, while Nvidia has skyrocketed 127%.
The company’s third quarter performance helps to explain the stock’s meteoric ascent.
Sales rose 54% from a year ago to $4.3 billion. Earnings per share surged 134% year-over-year.
“We believe AMD will continue to gain material server/PC share in 2021/2022driven by performance leadership while Intel continues to struggle on10/7nm,” wrote Barclays analyst Blayne Curtis in a recent note to clients.
Curtis rates AMD’s stock at an Overweight (equivalent to a Buy rating) with a $135 price target.