Jefferies analysts published takeaways from their latest Cloud Instance monthly report, a comprehensive analysis tracking public cloud instance types across the six leading Cloud Service Providers (CSPs).
Instances are virtual machines created by CSPs, by partitioning their data center servers through a software layer. These machines cater to different workloads and are optimized based on configurations of compute, storage, and networking.
Utilizing data sourced from Liftr Insights, the report defines an instance type as a pre-configured and operational virtual server with a standardized shared capability, encompassing factors like core speeds and available cores.
Along these lines, Jefferies analysts reaffirmed their Buy ratings for Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD), based on positive instance data for October 2023.
In that month, NVDA maintained a significant presence in the accelerator instances market, accounting for 85.5% of total instances, slightly down from 86.0% in the year-ago period.
Notably, NVDA secured 80% of the newly added accelerator instances during the month, with AMD-Xilinx and AMD contributing 17% and 2%, respectively.
“NVDA made up nearly all of incremental overall accelerator deployments since Feb-22, except for” November 2022, April 2023, August 2023, and October 2023, Jefferies analysts wrote.
During the same month, AMD CPU instances saw a 3.7% month-over-month growth, constituting 24% of incremental CPU deployments. This increase was part of a consistent upward trend, with a 14.6% quarter-over-quarter growth in September 2023.
AMD's share gained 15 basis points, primarily driven by share gains at Aliyun, Amazon Web Services (AWS), and Tencent, partially offset by losses at Azure and GCP.
AMD closed down 3.5% on Monday after Northland analysts downgraded the stock’s rating, while NVDA gained 0.27%.
Intel (NASDAQ:INTC) and AWS accounted for 64% and 8% of CPU deployments in October 2023, respectively.