Advanced Micro Devices (AMD) stock hit a new 13-year high on August 8, a day after AMD launched its 7-nm (nanometer) EPYC Rome CPU. The stock’s momentum comes from AMD’s server CPU business, which got new life in 2017 with the first-generation EPYC Naples. AMD gained 3.2% server CPU market share at the end of 2018 because of the EPYC Naples.

The company’s looking to gain market share by delivering competing CPUs at lower prices. The EPYC Rome has helped AMD outperform Intel’s (INTC) Xeon Cascade Lake Platinum 8280 in performance. Plus, AMD’s CPU costs $3,000 less. So how can AMD offer competitive CPUs at such low prices and still profit?