AMD Will Supply Its Cloud Server Chips For Amazon And Defeat Intel In The Future

Intel's biggest competitor on the current processor market, Advanced Micro Devices Inc. (also known as AMD) will become a partner to supply cloud server chips for Amazon.com Inc. After the news was announced, its shares rose by 8.8%.

Amazon Web Services vice president - Matt Garman announced on Tuesday at an AMD event in San Francisco that among its most popular products, there were 3 ones based on AMD's Epic server chip. Garman said AMD chips could save up to 10 percent on computer costs.

In addition, the latest chip design of AMD has been sent to its customers. These chips are manufactured by Taiwan Semiconductor Manufacturing Co. according to a 7-nanometer production. Mark Papermaster, AMD's chief technology officer, said that AMD's technology was equivalent to Intel's 10-nanometer process but will be launched in the market first. “We have worked incredibly hard to bring AMD back to high performance,” Papermaster said. About Intel, they have released information about the 10nm transition but will not be available until the end of 2019.

At 12:55 pm, AMD's shares in New York rose by 8.2% to $ 21.53, albeit earlier to $ 21.65.

Server buyers, who are also known as the operators of large data centers on the internet, have become the most potential purchasers in the market of data center equipment. They include renowned companies like AWS and Google of Alphabet Inc. These server buyers have much focused on developing their products that match customers' demand toward cloud computing services.

In over 10 years, AMD has been neglected by the potential tech market, as the products they delivered were much later than others of the same kind. Moreover, some of AMD's products haven't reached the ideal performance as the company promised. AMD under the leadership of Lisa Su is allegedly capable of delivering highly competitive designs compared to Intel ones. For 15 months, AMD has returned to the server market with the confidence of defeating Intel.