On Thursday, AMD launched its latest chip for data centers and said that cloud computing services from Google, Microsoft, and Oracle will use the new chip.
The company’s CEO, Lisa Sue, said that the fourth generation EPYC processor, codenamed Genoa, will bring a significant improvement in performance and energy efficiency compared to the previous chip.
These features benefit organizations and cloud data centers, Su said. In terms of it reduces financial expenses, operating expenses, and total cost of ownership.
The Genoa chip launch comes as AMD’s US competitor, Intel, struggles to deliver its latest data center chips, codenamed Sapphire Rapids, to customers in a timely manner.
“With this new generation, AMD has made a huge leap in performance not just against Apple, but against the previous generation, making the growth potential of any AMD-based solution all the more realistic,” said Bob O’Donnell, an analyst at TECHnalysis Research.
AMD, which launched its first EPYC data center chip in 2017, has been steadily gaining market share at the expense of Intel, which has led to strong advances, especially with cloud service providers.
According to research firm IDC, AMD’s market share of x86 chips used by cloud services rose from zero in 2016 to about 29 percent last year. Cloud computing and its services are one of the largest growth areas for the semiconductor sector.
“IDC expects AMD to stay on the right track, and continue to raise market share in public cloud deployments,” said Ashish Nadkarni, Data Center and Cloud Analyst at IDC.