Advanced Micro Devices (AMD) stock has soared above $40, a level it last reached in 2000. Its processors are beating competitors in all markets—PCs, graphics, and servers. AMD’s second-generation EPYC Rome CPU (central processing unit) is gaining popularity in the cloud, enterprise, and HPC (high-performance computing) segments. This strength is thanks to the 25%–50% TCO (total cost of ownership) advantage the 64-core 7nm (nanometer) Rome has over its Intel (INTC) counterpart.

Data centers’ TCO not only includes the price of the server, but also power consumption, space, and performance costs. During AMD’s third-quarter earnings call, CEO Lisa Su explained, “it’s not just about performance but performance at a given power level.”