Semiconductor giant Advanced Micro Devices (AMD) has disclosed its plans to deliver a 30x increase in energy efficiency for its EPYC CPUs and Instinct accelerators in Artificial Intelligence training and High-Performance Computing (HPC) applications by 2025.
These applications run on accelerated compute nodes, which are considered to be the most powerful and advanced computing systems in the world used for scientific research and large-scale supercomputer simulations.
By increasing the energy efficiency, billions of kilowatt-hours of electricity can be saved, thus reducing the power required for these systems to complete a single calculation by 97% over five years. (See Advanced Micro Devices stock charts on TipRanks)
The Executive Vice-President and CTO at Advanced Micro Devices, Mark Papermaster, said, “Focused on these very important segments and the value proposition for leading companies to enhance their environmental stewardship, AMD’s 30x goal outpaces industry energy efficiency performance in these areas by 150% compared to the previous five-year time period.”
On September 23, Piper Sandler analyst Harsh Kumar reiterated a Buy rating on Advanced Micro Devices and raised the price target from $110 to $120. The new price target implies 19.6% upside potential from current level.
Kumar is of the opinion that the company can procure additional supply in the later part of 2021 and full-year 2022 to support strong growth.
Overall, the stock has a Moderate Buy consensus rating based on 11 Buys, 3 Holds and 1 Sell. The average Advanced Micro Devices price target of $116.21 implies 15.8% upside potential to current levels.
Furthermore, Advanced Micro Devices scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Related News:
American Tower Prices €1B Senior Notes Offering
Navient Announces Plan to Exit Federal Student Loan Servicing Contract
Casey’s to Buy 40 Pilot Convenience Stores for $220M
