On April 4, Advanced Micro Devices (AMD 0.19%) announced that it would increase its data center solutions by acquiring Pensando for $1.9 billion. Pensando brings hardware and software capabilities that can help improve data centers' efficiency by reducing the workloads of server processors. Here are some highlights from the video.
- On Feb. 14, AMD completed its acquisition of Xilinx and shared an updated presentation on its long-term total addressable market (TAM) opportunities. AMD believes its most significant market opportunity is data centers, with roughly $50 billion of TAM.
- AMD provides several solutions for data centers. The best known is Epyc, its server processor. Epyc is currently in its third generation and has been heavily adopted by data center providers. AMD is scheduled to release its fourth generation, Genoa, later this year.
- AMD's new Pensando acquisition is scheduled to close in the second quarter of 2022. AMD believes that it needs Pensando's technology to deliver the performance, power efficiency, and capabilities it needs to be a strong player in data center markets.
Click the video below for my full thoughts and analysis.
*Stock prices used were the market prices of April 4, 2022. The video was published on April 4, 2022.