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AMD Becomes the Most Beneficiary of Intel Chip Vulnerabilities More corporate customers are starting to think about AMD

via:博客园     time:2018/1/6 15:02:10     readed:711

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January 5 According to foreign media reports, Earlier this week, when Intel chip loopholes exposed by the outside world, many investors have started to sell Intel shares, began to target AMD, in fact, this is a very reasonable choice .

Because there will be more businesses choose to buy AMD server chips to address the security risks caused by the Intel chip vulnerabilities. The architectural differences between Intel and AMD determine that AMD will not be affected by the vulnerability.

The British technology site reported on Tuesday that some Intel processors had "system-level design flaws" and security issues, and the issue was later confirmed by Intel.

AMD shares rose 10.4% in the two days since the report was released, while Intel's stock price dropped 5.2% to a volatile value of $ 11.3 billion. The two exposed holes, one called Meltdown, appear on Intel chips. The other, Specter, may affect Intel, AMD and ARM chips.

Intel on Wednesday said that for the average user, after the security upgrade, the so-called performance decline will not have much impact. However, during an investor conference call, Intel acknowledged that processor performance will have a 30% decrease in some comprehensively high-load operations. Bank of America Merrill Lynch said to customers that the biggest impact on Intel may be out on the corporate server.

On the other hand, AMD said any performance impact after "specter-related" software upgrades can be "negligible" and there is no risk of being exploited. AMD also confirmed that due to differences in processor architecture, another Meltdown vulnerability will not affect its own product. Both researchers and Apple say specter vulnerabilities are harder to use.

There are already many Wall Street analysts predict that Intel's security issues will make AMD the biggest beneficiary. Mizuho Securities analyst Vijay Rakesh said in a report, AMD may be "different architectures" as a marketing advantage of publicity, to further combat Intel.

Data center business has always been Intel's major profit division, sales of server chips to cloud computing vendors and enterprises, Intel is the most important source of income. Rakesh pointed out that Intel had 99% market share in the data center market, but now gives AMD a huge opportunity.

According to FactSet's data and analyst estimates, Intel's data center unit generated $ 18.5 billion in revenue for the company in 2017, bringing in $ 7.4 billion in profits.

Bank of America Merrill Lynch analyst Vivek Arya said: "Intel's long-term customers are now likely to start looking for an alternative from AMD, in order to share the risks posed by Intel processor vulnerabilities. AMD will be the most direct beneficiary of this incident. & rdquo;

In fact, before the AMD server market also had a good performance. With AMD reaching 25% of the server market in 2006, AMD could have billions of dollars in performance for the entire company if it had 10% to 15% market share in the data center business.

Growth for any area of ​​AMD is a good thing for AMD because Wall Street previously forecast AMD's sales in 2017 to be only $ 5.25 billion.

Well-known technology industry analyst Fred Hickey said AMD must seize this opportunity. "Intel processor vulnerabilities lead to security issues and performance impact, the timing for Intel is very bad. Because Intel is currently facing tremendous pressure from long-term rival AMD. Hickey said. AMD's next-generation processor is the first such huge pressure to re-impose Intel since the Opteron era. & rdquo;

In June last year, AMD launched a very high-profile Epyc data center processor, and access to Microsoft Azure and Baidu and other large customers support.

Hickey said: "For Intel, this may mean losing some of its market share and revenue, as well as pricing power and lower gross profit margin. The original advantages will be reduced, allowing customers to start moving away from Intel, which will also change Intel over the years in the PC and server market dominance. In fact, the original AMD's new generation of processors already have the momentum to stand up, but the exposure of security issues is to accelerate the rise of AMD. & rdquo;

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