Advanced Mirco Devices Jumps on New Server Chips

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NEW YORK (TheStreet) - Chip maker Advanced Micro Devices was gaining in New York after the semiconductor maker said its next generation of server processors will run on ARM -based Cortex technologies rather than Intel's x86 format.

Advanced Micro Devices was gaining 1.2% to $410 in afternoon trading. Shares have surged 70% in 2013 compared to a 16% advance for the S&P 500.

ARM-based chips can be found in smartphones and tablets which run Google's Android, Apple's iOS and some Microsoft Windows 8 devices.

And these AMD processors won't be just any old kind of chips which power servers. AMD is promising a completely new line of devices, currently codenamed "Moscow", to be built around ARM's 64-bit, Cortex-A57 line of processors either 8-core or 16-core, clocking-in at a minimum of 2 GHz. Top-of-the line silicon for super, high traffic machines.

These new AMD devices will reportedly be capable of up to four times the performance of their current Opteron X (6300/4300) models.

AMD hopes the bold move will help it to - in their words - recapture market share in enterprise and data center servers by unveiling innovative products that address key technologies and meet the requirements of the fastest-growing data center and cloud computing workloads". In other words, distance themselves from being known as the other guys who make x86 processors.

Further down AMD's server processor line X86 technology will continue to rule. Their next generation "Stremroller" chip (codenamed "Berlin") will also be super efficient with eight times the computing-per-watt as the current Opterom 6386SE equivalent. There will also be new "Warsaw" x86 chips meant to challenge Intel's Atom devices.

According to their just-published timetable, AMD is promising these new processors to reach the marketplace in mid-2014.

--Written by Gary Krakow in New York.

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