During the second-quarter earnings call on July 30, AMD’s CEO, Lisa Su, discussed EPYC Rome. She highlighted that the EPYC Rome pre-launch with some cloud and OEM (original equipment manufacturers) customers was a success despite weak demand.

On July 7, when AMD launched its 7nm Ryzen PC CPU and Navi GPU (graphics processing unit), its stock rose 7.3% in three days. We expect the stock to rise by mid-single-digits on Wednesday after EPYC Rome launches. Why are we more bullish on Rome than 7nm Ryzen? First, we’ll discuss why server CPUs are important for AMD. We’ll also discuss Su’s commentary on the earnings call.