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Advanced Micro Devices on Monday announced new specialized processors for different data-center workloads. It also added Facebook as a customer for its server chips. AMD stock surged higher on the news.

During an online event, the Santa Clara, Calif.-based company showcased its growing data-center momentum and latest high-performance processors.

AMD announced that Meta Platforms, the parent company of social network Facebook, is the latest hyperscale cloud company to adopt AMD's Epyc central processing units, or CPUs.

The Facebook win was a surprise because it has historically used only Intel processors, Rosenblatt Securities analyst Hans Mosesmann said in a note to clients. He rates AMD stock as buy with a price target of 180.

AMD Stock Pops

During the 40-minute event, Chief Executive Lisa Su said AMD is focused on making processors for four types of data-center workloads. They include general-purpose computing, technical computing, accelerated computing and cloud native computing.

"Our CPU, GPU (graphics processing unit), and process and packaging innovations are enabling AMD to deliver leadership performance across the data center," Su said.

New Accelerators, Server Processors

On Monday, AMD launched its AMD Instinct MI200 series accelerators, which are optimized for high-performance computing and artificial-intelligence workloads. The company described them as "the first exascale-class GPU accelerators." AMD competes with Nvidia in GPUs.

AMD also previewed the use of 3D chiplet packaging technology in server CPUs. Third-generation AMD Epyc processors with AMD 3D V-Cache will offer a 50% average performance uplift across targeted technical computing workloads. The new chips will launch in the first quarter of 2022.

Plus, AMD shared more details about its data-center roadmap, including fourth-generation Epyc processors.

AMD Seen Gaining Market Share

"The CPU announcements we see as disrupting Intel's roadmaps and placing AMD in the pole position to capture over half of the data center market by 2023," Mosesmann said. In GPU computing, AMD made the case that it can outperform Nvidia GPUs in high-performance computing applications, he said.

On Oct. 18, AMD stock broke out of a double-bottom base at a buy point of 114.59, according to IBD MarketSmith charts.

"This event provided further evidence/confidence in AMD's strong and expanding data-center positioning and roadmap," Wells Fargo analyst Aaron Rakers said in a note to clients. He reiterated his overweight, or buy, rating on AMD stock and raised his price target to 180 from 145.