Advanced Micro Devices, Inc. (NASDAQ:AMD) is powering France's first exascale supercomputer, a landmark project that showcases the chipmaker's growing influence in global AI and scientific computing.
In a major win for its AI ambitions, the Nvidia Corp (NASDAQ:NVDA) rival will supply the cutting-edge chips behind a new European supercomputer designed to push breakthroughs in research and reduce reliance on foreign technology.
AMD and French tech company Eviden will build a powerful new supercomputer called Alice Recoque to help Europe compete in artificial intelligence and scientific research.
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It will be installed in France and become the country's first—and Europe's second—exascale supercomputer, capable of performing more than a billion-billion calculations per second. That's faster than humans could think through in four straight years.
France's public research agencies are funding the $600-million project with help from the European Union.
AMD's newest processors and graphics chips will power the system, giving it the muscle to handle large-scale scientific problems such as climate modeling, medical research, clean-energy innovation, and next-generation AI training.
Even with all this performance, the supercomputer is designed to use far less energy than older systems. Eviden will cool the entire machine using warm water. Redesigned components will cut power costs while maintaining top-tier performance.
Europe sees this supercomputer as key to technology independence. By building more components locally and controlling the supply chain, France and its partners aim to reduce their reliance on foreign tech companies—especially in strategic areas like AI.
AMD, a $390 billion company, gained over 99% year-to-date, backed by AI data center graphics processing unit (GPU) space expansion. It expects to continue gaining ground against Intel in the central processing unit (CPU) markets for PCs and servers.
Wall Street reacted positively to AMD's aggressive growth plans tied to booming demand for AI chips. Analysts expect substantial long-term expansion but differ on near-term stock upside.
Goldman Sachs' James Schneider said AMD set financial goals that beat expectations and highlighted OpenAI as a major revenue driver, but says he wants clearer visibility into that opportunity before turning more bullish.
JPMorgan's Harlan Sur expects datacenter sales to surge as AMD gains share in AI GPUs and server CPUs, driving stronger margins and earnings power by 2027.
Bank of America's Vivek Arya noted AMD taking double-digit share of the AI chip market, leading to more than $100 billion in future datacenter revenue and major earnings growth through 2030.
Price Action: AMD stock traded 1.24% lower to $237.53 in premarket trading at last check on Tuesday.
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