AMD Expands Open AI Software Capabilities With Nod.ai Buyout
Advanced Micro Devices AMD is expanding its open AI software capabilities with the recently announced acquisition of Nod.ai, a provider of compiler-based automation software.
The deal will add a vastly experienced team capable of developing software-driven technology to accelerate the deployment of AI solutions suitable for AMD’s Instinct data center accelerators, Ryzen AI processors, EPYC processors, Versal SoCs and Radeon GPUs.
Nod.ai’s offering includes SHARK software that reduces the need for manual optimization. It also helps in lowering the time required to deploy highly performant AI models to run across data center, edge and client platforms powered by AMD’s CDNA, XDNA, RDNA and Zen architectures.
The acquisition is expected to strengthen AMD’s competitive position against NVIDIA NVDA in the software market. NVIDIA, through its CUDA toolkit, offers a development environment for creating high-performance GPU-accelerated applications.
Advanced Micro Devices, Inc. Price and Consensus
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AMD Benefits From Strong Portfolio & Partner Base
AMD is facing intense competition in the AI-chip market, which is currently led by NVIDIA. AMD shares have returned 68.3%, outperforming the Zacks Computer & Technology sector’s growth of 37% on a year-to-date basis but underperforming NVIDIA’s whopping return of 213.4%.
AMD benefits from a robust product portfolio and expanding partner base. It continues to strengthen its footprint in the enterprise data center arena by leveraging the power of fourth-generation EPYC CPUs and Pensando data processing units.
AMD, along with its partners, continues to offer solutions that enable greater data center consolidation. Its partnerships with the likes of Dell Technologies DELL, Microsoft MSFT, Amazon Web Services (“AWS”), Alibaba and Oracle have been key catalysts.
Cloud providers like Microsoft, AWS, Alibaba and Oracle deployed Genoa in the second quarter of 2023. Microsoft 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.
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 computing services.
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 current quarter. This is expected to boost AMD’s prospects, which currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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