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Analyst: Amazon Web Services Data Shows Huge Gains for AMD Chips

By Rich Duprey – Updated Aug 13, 2020 at 4:51PM

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The chipmaker continues to steal market share from its rival.

Advanced Micro Devices (AMD 0.32%) seems to keep gaining on Intel (INTC -6.41%) in crucial areas. One analyst reports that the chipmaker has doubled the presence of its Zen 2 Rome processors on Amazon.com's (AMZN 3.04%) massive data centers.

DA Davidson analyst Ben Wilson says he found the more advanced progeny of AMD's Epyc processor on Amazon Web Services in 14 regions, double the seven regions he previously counted. As Rome only became available on AWS two months ago, the "rapid buildout" of the processor provides a substantial boost to AMD's data center business.

Two people looking a computer servers

Image source: Getty Images.

A processor gladiator

Tech companies that had originally been timid about switching away from Intel's Xeon CPU's have begun adopting AMD's offerings in greater numbers. The biggest data center operators, such as Amazon, Alphabet's Google, and Microsoft, have all installed versions of AMD's Epyc processors.

Introduced just three years ago, the Epyc processor has become a key component of AMD's success. During the chipmaker's second quarter earnings conference call two weeks ago, president and CEO Lisa Su said she believes "Rome is going to continue to be a strong driver of our growth into the second half of this year as well as next year."

And just as Rome was the natural progression from the original Epyc processor, code-named Naples, AMD says it is still on track to deliver Milan later this year, the next-gen server processor using its Zen 3 "7nm+" architecture.

AMD continues to take market share from Intel in the server processor market. As Su noted, the chipmaker hit its goal to reach double-digit market share in the data center server processor market.

Editor's Note: This article has been updated to clarify the launch date of the Epyc processor, among other changes.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and Microsoft. The Motley Fool recommends Intel and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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