AMD launches EPYC 4005 series for SMBs and IT services

SANTA CLARA, Calif. - Advanced Micro Devices, Inc. (NASDAQ: AMD), a prominent player in the Semiconductors industry with a market capitalization of $175 billion, announced today the launch of its EPYC 4005 Series processors, aimed at providing small and medium-sized businesses and hosted IT service providers with a balance of performance, reliability, and efficiency. According to InvestingPro data, AMD maintains strong financial health with a current ratio of 2.8, indicating robust operational capability. The new processors are designed to power a range of enterprise applications, virtualized environments, and cloud services.

The EPYC 4005 Series leverages the AM5 socket, which is also used by the company’s EPYC 4004 Series, allowing for compatibility and ease of deployment across various enterprise-class form factors, including servers, blades, and towers. In benchmark tests using the Phoronix suite, the 16-core EPYC 4565P model reportedly outperformed Intel’s 6th generation Xeon 6300P by 83%. This innovation comes as AMD demonstrates strong revenue growth of 21.7% in the last twelve months, with analysts expecting continued profitability this year.

AMD’s enterprise and HPC business group corporate vice president, Derek Dicker, highlighted the processors’ balance between performance, simplicity, and affordability, catering to the needs of growing businesses and dedicated hosting providers facing budget and complexity constraints.

The processors have garnered support from several partners and customers, such as Altos, ASRock Rack, Gigabyte, Lenovo, MiTAC, MSI, New Egg, OVHcloud, Supermicro, and Vultr. These collaborators offer enterprise solutions tailored to the needs of small businesses, especially in the era of AI, with a focus on cost-effective and reliable systems. For detailed analysis of AMD’s market position and growth potential, investors can access comprehensive research through InvestingPro, which offers 17+ additional exclusive insights about the company’s performance and outlook.

OVHcloud’s Chief Product and Technology Officer, Yaniv Fdida, praised the EPYC 4005 Series for its performance and energy efficiency in a cost-effective platform. Supermicro’s President & Managing Director EMEA, Vik Malyala, pointed out the support for technologies like PCIe 5.0 and DDR5 memory, enhancing service delivery at lower latency.

Vultr’s CEO, J.J. Kardwell, announced the immediate availability of Bare Metal and Cloud Compute instances featuring the new processors, emphasizing their straightforward deployment, scalability, high clock speed, energy efficiency, and best-in-class performance.

The EPYC 4005 Series includes models with different core counts, cache sizes, and thermal design power (TDP) ratings, with prices ranging from $239 to $699. The company’s strong market position is reflected in its gross profit margin of 53.6% and moderate debt levels, with cash flows sufficiently covering interest payments. According to InvestingPro’s Fair Value analysis, AMD currently shows potential for value appreciation, making it an interesting watch for investors seeking exposure to the semiconductor sector. This announcement is based on a press release statement from AMD.

In other recent news, Advanced Micro Devices (AMD) reported strong financial results for the March quarter, with revenues reaching $7.44 billion and earnings per share (EPS) of $0.96, surpassing consensus estimates. Analysts from Cantor Fitzgerald noted that AMD’s financial performance exceeded expectations, although the outlook for the second half of 2025 remains uncertain due to potential seasonal variations. Despite these uncertainties, Cantor Fitzgerald maintained an Overweight rating with a price target of $120, reflecting confidence in AMD’s growth, particularly in the Data Center Instinct segment.

Meanwhile, TD Cowen raised its price target for AMD to $115, maintaining a Buy rating, citing sustainable gains in PC and server CPU market share. However, TD Cowen adjusted AMD’s revenue projections slightly downward for 2025 and 2026, with earnings expected to be impacted by lower margins and increased expenses. Truist Securities revised its price target to $111, maintaining a Hold rating, due to challenges in the China market impacting Datacenter Accelerator revenues and an anticipated inventory write-down.

Northland adjusted its price target to $132 while maintaining an Outperform rating, highlighting AMD’s better-than-expected revenue and EPS for the quarter. The firm noted AMD’s issuance of $1.5 billion in debt to finance the acquisition of ZT Systems and the repurchase of $749 million of its own stock. Stifel also maintained a Buy rating with a $132 target, emphasizing AMD’s continued progress in high-growth areas and its potential to penetrate further into the AI ecosystem.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.