Advanced Micro Devices, Inc (AMD  ) launched the AMD EPYC 4004 Series processors that complement the existing AMD EPYC server CPU portfolio with new cost-optimized offerings for small and medium businesses and hosted IT service providers.

The AMD EPYC 4004 Series CPUs, powered by the highly efficient "Zen 4" architecture, target the price-sensitive buyer.

A server powered by a single AMD EPYC 4564P CPU delivers a 1.8x increase in performance per CPU dollar compared to an Intel Corp (INTC  ) Xeon E-2488 CPU.

Analysts consider AMD the second most critical AI beneficiary after Nvidia Corp (NVDA  ). Recent reports indicated that Microsoft Corp (MSFT  ) may opt for AMD artificial intelligence chips for its cloud computing clients as it battles a supply crisis regarding Nvidia H100 GPUs.

Meanwhile, despite intense competition, AMD noted a boost in its market share in the x86 processor market for client and server categories.

Analysts noted AMD's substantial gains in the server CPU market and its successful capture of market share in the merchant accelerator sector with the Mi300 series, positioning it as a strong competitor to Nvidia in the merchant accelerators market.

They also highlighted the untapped revenue synergies from AMD's acquisition of Xilinx, indicating a long-term potential exceeding $10 billion.

Investors can gain exposure to AMD via AOT Growth And Innovation ETF (AOTG  ) and Spear Alpha ETF (SPRX  ).

Price Actions: AMD shares traded lower by 1.20% at $164.33 at the last check Tuesday.