Chip giant Intel Corp. is leading growth in cloud technology, according to new research from KeyBanc Capital Markets.
Intel Corp. INTC, +3.21% is the winner in KeyBanc’s latest monthly data tracking server processors used for “cloud instances” or services available via a public cloud. The research, which was released Thursday, focus on newer processor architectures, such as Intel’s Ice Lake.
In May, cloud instances resumed solid sequential growth, KeyBanc said, increasing 3% from April and 26% compared with the same period last year. This was led mostly by instances harnessing Intel processors, which increased 4% from April and 18% on the same period last year. The growth was mostly fueled by use of Intel’s Ice Lake processor, which grew 10% month-over-month and 71% year-over-year thanks largely to use in Amazon.com Inc.’s AMZN, +3.58% Amazon Web Services (AWS) platform.
“We view these results as moderately positive for INTC, given modest share gains in cloud for the first time since September 2021,” wrote KeyBanc analyst John Vinh, in a note released Thursday.
Cloud instances that used Nvidia Corp. NVDA, +5.55% and Advanced Micro Devices Inc. AMD, +5.64% processors increased modestly, according to Vinh. Instances harnessing Nvidia’s graphics processor grew 2% month-over-month and 39% year-over-year, thanks mostly to use of its Ampere processor at Alibaba Group Holding Ltd. BABA, +4.91%.
AMD cloud instances grew 1% from April and 116% year-over-year. Use of the company’s Milan processors grew modestly in May, led my AWS deployments, Vinh wrote.
Shares of Intel gained 3.1% in afternoon trading Friday, boosted by the broader rebound in tech stocks, while Nvidia climbed 4.0% and AMD rose 4.8%, outpacing the S&P 500 index’s SPX, +3.06% 2.4% gain.