According to a recent report by Gartner, Advanced Micro Devices Inc (AMD) is the top company for enterprise AI server CPUs. The report, titled “AI Vendor Race: AMD Is the Company to Beat for Enterprise AI Server CPUs,” highlights the company’s alignment with agentic AI orchestration, I/O bandwidth and server consolidation capabilities. The world’s AI journey has been very GPU-centric so far. The advent of agentic AI could turn the table and lead to a more CPU-focussed outlook.
Will AMD’s CPU Capabilities Push The Next Leg Of AI Deployment?
AMD’s EPYC server CPU is purpose built for enterprises. According to the company, this family of CPUs “gives enterprises a flexible foundation for modern AI infrastructure.” The Gartner report also highlights how agentic AI will change the CPU-GPU dynamic for AI workloads. AMD’s architecture also caters to cost-efficiency demands of agentic AI. The report states, “As enterprise AI shifts toward dynamic agentic systems that require continuous orchestration, CPU performance is becoming a gating factor.“
AMD is one of the few companies with its fingers in both CPU and GPU pies. While Intel, Apple, and Qualcomm also manufacture GPUs, they are far behind in terms of AMD’s CPU-GPU capabilities. Nvidia (NVDA), the clear leader in today’s AI-centric market, is the dominant name in the GPU business. However, the world’s most valuable company does not have a CPU market.
Will Stock Prices Surge?
AMD’s stock price has faced a steep dip today amid a market-wide correction. More than $1 trillion was wiped out from the US stock market. The dip seems to be due to doubts over a US-Iran peace deal. Many anticipate energy prices to surge if a peace deal is not finalized. Such a move could put addition pressure on the economy. The Federal Reserve is also expected to hike rates later this year.
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While we may be in for a bearish market environment right now, the coming agentic AI may lead to a boost for AMD’s stock price.