AMD (AMD) Wins Google Cloud Over to Tau, More Likely to Follow - BofA Securities

June 18, 2021 7:32 AM EDT
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BofA Securities analyst Vivek Arya reiterated a Buy rating and $110.00 price target on AMD (NASDAQ: AMD) after Google Cloud announced T2D, the first instance in the new family of Tau Virtual Machines (VMs) powered by AMD’s 3rd gen. Milan server CPU.

The analyst stated "To put this in perspective, each new cloud instance family is like an automotive OEM offering a new vehicle class (sedan, SUV, truck, etc.). Google is offering a new type of vehicle and chose to have AMD be the “engine”. They may come out with other “models” in the same instance (using Arm or Intel), but being the first offering of a new instance type is a big deal for AMD as it is an important validation of the improved competitiveness of AMD’s Milan CPUs. Particularly impressive is Google’s claims that T2D instances offer 42% improvement in price-performance compared with Arm-based VMs such as Amazon’s Graviton2 and 56% improvement in raw perf. (measured by common SPECInt benchmark). Outperformance was even larger when compared with Intel’s Cascade Lake server CPUs (this is one generation behind Intel’s latest Ice Lake server offering though separate benchmark tests reaffirm AMD Milan leadership over Ice Lake also). If these performance metrics are accurate, the implications are that other cloud vendors would have to incorporate Milan-based instances to compete. T2D instances are offered in 8 different predefined configs, with up to 60 vCPUs per VM, and up to 4GB of memory per vCPU. T2D VMs will be available in Q3 are targeted at scale-out applications (including internet applications used by social media companies) and early customers include Twitter and Snap".

For an analyst ratings summary and ratings history on AMD click here. For more ratings news on AMD click here.

Shares of AMD closed at $84.55 yesterday.



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