February 2025
Published: 20 Feb 2025
Author: Precedence Research
In an interesting decision to bolster Artificial Intelligence computing infrastructure, Vultr, which provides sustainable cloud services, has installed the latest high-performance AMD GPUs in its Chicago data center. The deployment of these AMD Instinct™ MI325X GPUs essentially provides the best-in-class offering for scalable and efficient AI-native applications. Vultr's choice aligns with its great desire to democratize access to high-performance cloud computing. The collaboration with AMD, a worldwide leader in semiconductor tech, also entails AMD Instinct MI300X GPUs and access to the ROCm™ open software ecosystem, consolidating its role in the AI hardware marketplace. With a growth equivalent to almost 14% in revenues over the last year, AMD is well-placed in the AI-driven semiconductor industry.
The AMD Instinct MI325X GPU serves for training, fine-tuning, and inference of AI models requiring 256GB HBM3E memory and 8 TB/s memory bandwidth. For maximum hardware efficiency, these GPUs are incorporated into the Vultr cloud infrastructure using Supermicro AS-8126GS-TNMR 8-U servers. The MI325X GPUs also come with seamless interoperability with its partner AMD Instinct MI300X together with a whole software ecosystem in ROCm with easy deployment to accelerate AI application development for the enterprises.
Vultr is proudly being the largest cloud infrastructure provider in the private world and has joined hands with AMD to make the Advanced Virtualization easier. The partnership involves enabling businesses to have adaptive services from sources that meet their needs to bring to life AI for innovation. J.J. Kardwell, the CEO himself, pointed out that the partnership is vital simply because AMD GPUs set new standards in the industry for inference performance and efficiency.
The corporate vice president of business development at AMD's Data Center GPU Business Unit, Negin Oliver, noted that it is a strategic cooperation as AMD also offers GPU unreachable power-intuitive efficiency. This solidifies Vultr's growing cloud influence as it strengthens its mission - simple use, affordable, and high-quality cloud solutions.
According to analysts, AMD is on track to be an emerging contender in the semiconductor industry. Benchmark has a Buy rating for AMD with a price target of $170. Daiwa Securities downgraded AMD from Buy to Outperform, assigning a target price of $130. TD Cowen changed AMD's price target from $150 to $135, where it urged more of coming innovations in the AI domain. Truist Securities downgraded the price target for AMD from $145 to $130, keeping a Hold rating.
Cantor Fitzgerald maintains its Overweight rating on AMD with a price target pegged at $135. Indeed, the delivery of AMD's Instinct MI325X GPUs by Vultr facilitated a landmark in the development of AI cloud computing, which would allow companies to create super-high-grade processing power and efficiency that never existed before. It uses the latest innovations from AMD; thus, it is well-placed to pave the road toward the next great AI transformation. Indeed, the strategic maneuvers of AMD prove it to be very financially solid and quite becoming a force in the AI hardware market.
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