Advanced Micro Devices AMD recently expanded its portfolio with the launch of Kria K24 System-on-Module (SOM) and KD240 Drives Starter Kit. The K24 SOM features a custom-built Zynq UltraScale+ MPSoC device and the supporting KD240 starter kit is a sub-$400 FPGA-based motor control kit.
Kria K24 SOM offers power-efficient compute in a small form factor. The solution targets cost-sensitive industrial and commercial edge applications. Its high determinism and low latency power electric drives and motor controllers used in compute-intensive digital signal processing applications at the edge.
Kria K24 can be used in electric motor systems, robotics for factory automation, power generation, public transportation such as elevators and trains, surgical robotics and medical equipment like MRI beds and EV charging stations.
KD240 Drives Starter Kit, an out-of-the-box-ready motor control-based development platform, when combined with K24 SOM, helps users to deploy products faster.
Advanced Micro Devices, Inc. Price and Consensus
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
Moreover, with the launch of Kria K26 SOM, AMD introduced the first App Store for edge applications. With the launch of the KD240 Starter Kit, AMD is now the first to offer pre-built motor control apps. This enables users to create power-efficient industrial solutions that are reliable, available, and with advanced security features.
AMD Benefits From Strong Portfolio & Partner Base
AMD shares have returned 56.9%, outperforming the Zacks Computer & Technology sector’s growth of 37.2% on a year-to-date basis.
AMD is benefiting from a solid partner base that includes the likes of Dell Technologies DELL, Microsoft MSFT, Amazon Web Services (“AWS”), Alibaba and Oracle. Cloud providers like Microsoft, AWS, Alibaba and Oracle deployed Genoa in the second quarter of 2023.
AMD, along with its partners, continues to offer solutions that enable greater data center consolidation. The company is benefiting from the impressive performance of fourth-generation EPYC CPUs. As data center applications scale in complexity, AMD Pensando DPUs emerge as the ideal solution for offloading infrastructure services from CPUs, freeing up valuable work cycles.
Dell is leveraging AMD EPYC fourth-generation CPUs in its latest PowerEdge C6615 server. In combination with OpenManage Enterprise software, Dell servers enable cloud service providers to intelligently monitor their systems and deliver more efficient compute services.
Microsoft cloud arm Azure announced the first Genoa-X HPC instances that offer more than five times higher performance in technical computing workloads compared to their prior generation.
Currently, there are more than 670 AMD-powered cloud instances publicly available, and this number is expected to grow 30% to 900 by the end of 2023, primarily due to the adoption of Genoa.
Moreover, the availability of Bergamo is crucial, as several server providers like Dell, HPE, Lenovo and Supermicro are set to launch their new Bergamo-based platforms in the third quarter.
These factors are expected to boost AMD’s prospects in the near term. The company expects third-quarter 2023 revenues to be $5.7 billion (+/-$300 million), which indicates year-over-year and sequential growth of 2.5% and 6.5%, respectively.
Zacks Rank & A Stock to Consider
AMD currently carries a Zacks Rank #3 (Hold).
NVIDIA NVDA is a better-ranked stock in the broader sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVDA shares have returned 197.8% year to date. The long-term earnings growth rate for NVIDIA is currently pegged at 13.5%.
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