Semiconductor company focused on computer processors Advanced Micro Devices, Inc. (AMD) recently announced that its EPYC processors have been selected by the Department of Energy’s (DOE) Argonne National Laboratory to power a new supercomputer, Polaris.
Following the news, shares of the company declined marginally on Monday. It added to its losses slightly to close at $111.04 in extended trade.
Polaris, which is built by Hewlett Packard Enterprise, will use AMD’s EPYC 7532 and EPYC 7543 processors, along with NVIDIA’s A100 Tensor Core GPUs. Polaris will be used to prepare researchers for the forthcoming exascale supercomputer at Argonne called Aurora. Polaris is scheduled to go into use starting early 2022.
The Senior Vice-President and General Manager of Datacenter and Embedded Solutions Business Group at AMD, Forrest Norrod, said, “We are extremely proud to support Argonne National Laboratory and their critical research into areas including low carbon technologies, medical research, astronomy, solar power and more as we draw closer to the exascale era.” (See AMD stock chart on TipRanks)
Recently, Goldman Sachs analyst Toshiya Hari reiterated a Buy rating on the stock with a price target of $130, which implies upside potential of 16.8% from current levels.
The analyst said, “We believe AMD’s recent CPU/GPU wins in supercomputing have important and positive implications for the company’s forward trajectory in the data center, as design wins in supercomputing are awarded based primarily on performance with good insight into future technology/product roadmaps.”
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 11 Buys, 3 Holds and 1 Sell. The average AMD price target of $114.62 implies that the stock has upside potential of 3% from current levels.
AMD scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 22.6% over the past year.