How AMD Core Unlocking Works
How AMD Core Unlocking Works
We’ve spent the last couple of weeks travelling the length of Taipei, seeking answers from the three main motherboard companies: ASUS, Gigabyte and MSI, learning how exactly they’ve each achieved the core unlocking capacity for AMD AM3 CPUs, especially as it’s been officially removed by AMD from its latest 8-series chipsets.
We’ll start with a bit of background first. At the time of AM2+’s demise, AMD was losing ground (and money) hand over fist to Intel and needed any advantage it could grab. While AMD must have been concerned about the fact that core unlocking could erode the market for the company’s latest Phenom II X4 CPUs and pushed the ASP (average selling price) downwards, the vast majority of consumer CPUs it sells are sub-£100 models and core unlocking helped revitalise interest in these.
With its previous SB710/SB750 Southbridge, AMD introduced a new feature called Advanced Clock Calibration. This included an «EC Firmware» function in the BIOS that could be issued a set of codes (subsequently provided by AMD to partners) and this would enable the extra cores of compatible CPUs that had previously been disabled. The EC Firmware is specific to each CPU that has a hidden core(s), so there’s a list of codes need for all the CPU individually, rather than just one global setting.
In the latest SB850 southbridge AMD hid the EC Firmware function and declined to issue a new set of compatible codes, much to the dismay of motherboard manufacturers. They could either accept that it was game over for core unlocking, or call in the engineers and come up with their own ways to get it working again. They feared that without it — and facing a rejuvenated £100 Intel line-up with the excellent Core i3-530, interest in AM3 would decline.
Asus
First out the blocks with an 890 chipset board capable of CPU core unlocking was Asus’ 890GX based Asus M4A89GTD Pro/USB.
Clearly it took the other motherboard companies by surprise as both MSI and Gigabyte were at least a month behind. It’s highly unusual for one company to have such a big, clear lead — chalk one up to Asus’ secrecy there. It wasn’t until recently that Asus would let us in on how it able to achieve this.
Asus engineers basically replaced the whole advanced clock calibration circuit (ACC) and then substituted in a hardware switch which issued its own EC Firmware codes for the CPUs instead. This costs a few dollars more, but Asus claims it not only gives more control to select individual cores (if there’s more than one available) for the maximum unlocking success rate, but given previous experience the engineers have developed a feature to test and check if the unlocked cores even function correctly and disable bad ones automatically.
On Most Asus boards this option is available with a BIOS switch, but with its recent [Crosshair IV Formula motherboard it now has a hardware button on the board to turn it on and off, although we’re unsure if it still requires the complete system reboot in the same way.
AMD: Zen4 And Xilinx Unlock Next Growth Cycle Amid Bloodbath (NASDAQ:AMD)
Sep. 15, 2022 3:07 PM ETAdvanced Micro Devices, Inc. (AMD)INTC, NVDA115 Comments
Envision Research
Marketplace
Summary
- AMD is now trading at 17.6x FW P/E, the lowest level in several years.
- Its Price/Earnings/growth ratio, or PEG, is 0.57x, only about half of Peter Lynch’s favorite threshold of 1x for high-growth stocks.
- As such, AMD stock now offers a highly asymmetric return profile.
- A 20%+ annual return is likely, yet the downside is limited even if AMD’s valuation further contracts.
- Furthermore, AMD’s imminent Zen4 chips and Xilinx synergy provide additional strong catalysts to propel the next growth cycle.
- I do much more than just articles at Envision Early Retirement: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
Pavel Byrkin
Thesis
Chips stocks are experiencing a bloodbath lately given their highly cyclical nature. The brewing economic trouble ahead, such as red-hot inflation data and mounting geopolitical tensions, adds further fuel to the fire sale. The NASDAQ 100 index has suffered more than a 26% correction YTD. Against this overall backdrop, all the leading chips stock have suffered far worse losses, as seen. To wit, Intel (INTC) has retreated by more than 41% and ironically is the “best performing” major chips stock in the past year. Nvidia (NVDA) suffered a loss of 55.3%, which will require a 123% rally to break even.
And the main topic of today, Advanced Micro Devices, Inc. (NASDAQ:AMD) has suffered a loss of more than 46%. The combination of such price correction and earnings growth has now bought AMD’s FW P/E to about 17.
6x (less than ½ of NVDA’s 38x FW P/E). As you can see from the chart below, this is the lowest level since 2021, and also a very attractive level in multi-years. The valuation is even more compressed when adjusted for its growth potential. As you will see in a later section, its P/E/growth (“PEG”) ratio is now only 0.57x, and a simple reality check will show a highly asymmetric return profile in the next few years.
On the other hand, business fundamentals remain strong. AMD currently provides the best product lineup not only in its own history but also arguably in the industry. As to be elaborated immediately below, I see both the Zen4 CPU and Xilinx synergy as key drivers to unlocking its next growth cycle. They will further strengthen its already strong product lineups, widen its moat, and sustain its pricing power for years to come.
Source: Seeking Alpha data
Source: Seeking Alpha data
Xilinx and Zen4 further strengthen product lineup
AMD currently features the best product portfolio not only in its own history but also arguably in the industry.
These products include a rich mix of lineups such as EPYG server processors, high-end Ryzen processors, and premium gaming consoles. These products successfully cater to critical high-grow market sectors including desktop and mobile computing, PC and gaming, GPU, data center, et al. As a result, many segments have been posting robust growth. Take the Computing & Graphics and the Enterprise, Embedded & Semi-Custom segments as an example. Both feature some of the most advanced products and had been posting hefty double-digit YoY in the March quarter.
Source: AMD 2022 Q2 earnings release
Admittedly, the business reported some headwinds in the June quarter. Growth slowed down and margins are under pressure (as to be elaborated on in the next section). However, I see such issues to be temporary and part of the normal business cycle. The products are what matters in the end at a fundamental level. And I see both its Xilinx acquisition and Zen4 as making its already-strong product portfolio even stronger.
AMD completed the $35 billion Xilinx acquisition in mid-February, and it has already been additive to existing operations. It added nearly $560 million to the top line during the short period after its acquisition. And the potential synergist benefits are only getting started in areas like AI, as commented by CEO Lisa Su in the Q2 earnings release (abridged and emphases added by me):
… we have identified greater than $10 billion in long-term revenue synergy opportunities as we bring the AMD and Xilinx assets together. Our largest opportunity is in AI and we have already started executing new hardware and software roadmaps to capture the significant opportunity we see to drive pervasive AI across cloud, edge and endpoints.
At the same time, the launch of the long-expected Zen4 processors is on track, as also commented Dr. Lisa Su in the Q2 earnings release (abridged and emphases added by me):
… we are on track to launch our all-new 5-nanometer Ryzen 7000 desktop processors and AM5 platforms later this quarter, with leadership performance in gaming and content creation.
Taking a step back, while there has been additional softness in the PC market in recent months, we believe we are very well positioned to navigate through the current environment based on the strength of our existing product portfolio and upcoming product launches.
These new Zen4 chips are expected to compete with Intel’s Raptor Lake series. The chips offer the “six fives,” features highly anticipated by high-end users like content generators and gamers: DDR5 memory, PCIe 5.0, 5nm, AM5, and 5.5 GHz+ clock speed. The 16-core Ryzen 9 7950X is the flagship in the new series. AMD claims it to be the fastest CPU in the world and it will come at a premium pricing of $699, which will help to further strengthen AMD’s margin and growth, as detailed next.
Source: tomshardware.com
Headwinds and margin pressures
As aforementioned, the business reported some headwinds in the June quarter. Growth is expected to slow down in the coming quarters and margins are under pressure.
Under GAAP basis, Q1 2022 gross margin came in at 48%, 200 basis points below the 50% record set in Q4 2021. And Q2 2022 gross margin contracted by another 200 basis points to 46% as seen below.
Source: AMD 2022 Q2 ER
To put such pressure under a broader perspective, the following chart compares AMD’s gross margin in recent years to NVDA and INTC. As seen, there is little doubt that the whole chip sector is currently going through a contracting phase of the cycle. All leading stocks have seen a sharp compression in their margins. NVDA suffered the most, with margin nosing diving from a peak of almost 65% in the previous quarter to the current level of 43%. AMD’s margin suffered the least. And its current margin of 46% is still above its long-term average of 42.75% and also above both NVDA and INTC.
Going forward, I see both the Zen4 release and Xilinx synergy to help maintain its margin advantage. As mentioned, I expect the leading performance and premium pricing on Zen4 to create margin headwinds.
5 = 160%).
The red line shows the returns if the valuation remains constant at the current levels of 17.2x P/E. The blue line shows if the P/E expands in the next 5 years to 20x. And finally, the green line shows the scenario of a P/E contraction to 15x. Under these assumptions, the purple box shows where I think the most likely return scenarios would be. As seen, AMD is projected to provide an annual return between 7.1% to a whopping 24% assuming a growth rate between 10% to 15%.
And as you can see from the 2nd chart below, the consensus estimates project a 17% CAGR in the next few years. Thus, the assumption of a growth rate between 10% to 15% represents a conservative projection.
Source: Author based on Seeking Alpha data
Source: Author based on Seeking Alpha data
Risks and final thoughts
Besides the margin pressure mentioned above, AMD also faces other risks. As a highly cyclical stock, the projected growth rate could contain large uncertainties.
These uncertainties are capsulated in the large variance in the consensus forecasts as shown above. The variance between the optimistic and pessimistic forecasts is more than a factor of 1.5x for 2024 FY for example (EPS of $5.0 on the lower end to $7.52 on the high end). In terms of annual rate, the low-end forecasts predict an 11% CAGR between now and 2025 (from an EPS of $4.37 in 2022 to $6.05 in 2025), and the high-end estimate projects a 21% CAGR (from an EPS of $4.37 in 2022 to $7.67 in 2025). Although as described in my simple reality-check, even a conservative assumption of 10% to 15% growth rates could lead to solid returns.
To conclude, chip stocks are notorious cyclical and AMD is no exception. And there is little doubt that we are going through a contracting phase of the cycle. The stock has lost more than 46% in the past year and more than 9% in a single day on 9/13. Such large corrections, combined with its healthy fundamentals, have created a high asymmetric risk/reward profile.
Under current conditions, a 20%+ annual return is likely even under conservative growth scenarios. And the downside is limited even if valuation further contracts.
Finally, the stock also features a strong balance sheet, a key to survival in a highly cyclical sector. As seen in the chart below, currently, AMD has about $5.99 billion of cash on its ledger, translating into $3.08 per share. It has some debt ($3.2B) but the debt is lower than the cash position. As a result, it carries a net cash position, a sizable $2.8B, on the ledger. When we subtract the cash out of the stock price, its PE would become even lower (slightly though, by about 1.8%). Lastly, as you can tell from the following comparison, AMD has the strongest balance sheet among its peers in terms of debt-to-equity ratio (only 5.8%) and debt-to-total-capital ratio (only 4.9%).
Source: Seeking Alpha data
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Unlocking amd
processor cores
If you have a computer equipped with a modern AMD processor, it means that you have a chance to significantly increase the performance of your PC without spending a single penny on this goal.
We are talking about a technology that is called «unlocking the cores of AMD processors.» This technology allows you to increase the number of processor cores available to the system — usually from two to four or three.
Of course, such an operation is very tempting. Indeed, as tests show, in some cases the performance of the updated processor almost doubles. Moreover, for the successful implementation of this operation, you only need a little knowledge of the BIOS options, and, by the way, a little luck.
Contents of the article
- How the method works
- Features of unlocking different processor series
- Which chipsets support unlocking processor cores? nine0012
- Unlocking technique
- Checking unlocking and testing cores
- Conclusion
How the method works
First of all, let’s try to figure out why AMD needed to «hide» processor cores from the user. The fact is that each manufacturer of processors within a certain line has several models that differ both in price and in capabilities.
Naturally, cheaper processor models have fewer cores than more expensive ones. However, in many cases it is irrational to specifically develop models with a smaller number of cores, so many manufacturers, in this case, AMD, do it easier — they simply disable unnecessary processor cores. nine0003
In addition, many AMD processors may have defective cores that have a number of flaws. Such processors are also not thrown away, and after disabling unnecessary cores, they are sold under the guise of cheaper varieties of processors. However, the detected shortcomings of disabled cores may not be critical for their functioning. For example, if the processor core has a slightly increased heat dissipation compared to the standard one, then the use of a processor with such a core is quite possible. nine0003
It should be said right away that the success of the operation to unlock the cores largely depends not only on the AMD processor line and its model, but also on a certain series of processors.
In many series, only the cores in individual processors can be unlocked, while in other series, almost all processors can be unlocked. In some cases, it is possible to unlock not the core itself, but only the cache related to it.
Unlockable AMD processors are Athlon, Phenom, and Sempron processors. Usually, unlocking is possible for cores 3 and 4 of the four available cores. In some cases, it is possible to unlock the second core in a dual-core processor, and in some cases, 5 and 6 cores in a quad-core processor. nine0003
Features of unlocking different processor series
Here are some examples of AMD processor series that can be unlocked, as well as their characteristic features of this process:
cache
Which chipsets support unlocking processor cores?
It should be noted that not all motherboards support the ability to unlock AMD processor cores.
You will only be able to unlock cores if your BIOS supports Advanced Clock Calibration (ACC) or a similar technology. nine0003
ACC technology is used in the following chipsets:
- GeForce 8200
- GeForce 8300
- nForce 720D
- nForce 980
- Southbridge Chipsets Type SB710
- SB750 Southbridge Chipsets
There are also several AMD chipsets that do not support ACC technology, but instead support similar technologies. These chipsets include chipsets with southbridges of the type:
- SB810
- SB850
- SB950
The method for unlocking the cores on these chipsets varies depending on the manufacturer of the motherboard
The method for unlocking
To unlock the cores, the user must access the BIOS tools. If the motherboard supports ACC technology, in most cases it is enough to find the Advanced Clock Calibration parameter in the BIOS and set it to Auto.
Some additional steps may be required for motherboards from certain manufacturers.
On ASUS motherboards, in addition to ACC, enable the Unleashed mode option, on MSI motherboards, the Unlock CPU Core option, and on NVIDIA motherboards, the Core Calibration option. On Gigabyte boards, you need to find the EC Firmware Selection option and set it to Hybrid. nine0003
On those chipsets that do not support ACC technology, the unlocking method depends on the specific manufacturer. We list briefly the options that must be used in the case of each specific manufacturer:
- ASUS — ASUS Core Unlocker
- Gigabyte — CPU Unlock
- Biostar — BIO-unlocKING
- ASRock — ASRock UCC
- MSI — Unlock CPU Core
Checking Unlocking and Testing Cores
In order to make sure that the unlocked cores of AMD processors really work, it is best to use informational utilities like CPU-Z. However, even if you make sure that the unlock was successful, this does not mean that the unlocked kernels will work without problems. In order to fully test their performance, it is recommended to conduct a thorough test of all processor parameters.
Also, the failure of the unlocking process may be indicated by computer malfunctions, and sometimes the inability to boot it. In the latter case, you will have to resort to clearing the BIOS memory and resetting it to the factory default state (we talked about how to carry out this process in a separate article). nine0003
If new cores are found to be faulty, the user can disable them at any time using BIOS options. In addition, you should keep in mind that the operation of unlocking processor cores works only at the BIOS level, and not at the level of the processors themselves. In the event that you put a processor with unlocked cores on another motherboard, they will still be locked.
And I would like to note one more thing. Although unlocking a processor is not equivalent to overclocking it, however, increasing the number of working cores of your processor will automatically increase the heat dissipation of the processor die. Therefore, perhaps, in this case, it makes sense to think about upgrading the cooler cooling the processor.
nine0003
Conclusion
Unlocking AMD processor cores is a simple process that can still help the user realize the full potential of their computing hardware. This operation is carried out by enabling the necessary BIOS options. Although unlocking the cores is not always guaranteed to be successful, it is not associated with significant risk, like overclocking, and can be tried in practice by any user. nine0003
Recommend this article to your friends:
Unlocking cores in AMD processors
Greetings dear friends. In this article, we will consider the possibility of enabling hidden cores and L3 cache on AMD Phenom II X2, X3, X4, Athlon X2, Athlon II, Sempron processors. On sockets AM2+ and AM3. AMD only produces chips with an even number of cores, there are no physically single-core and triple-core processors.
Which processors can be unlocked:
Phenom II X4 8xx — 2 Mb L3 cache
Phenom II X3 7xx — fourth core.
Phenom II X2 5xx — 3rd and 4th cores
Athlon II X4 — L3 cache in case of Deneb core.
Athlon II X3 — fourth core + in case of Deneb core — L3 cache.
Athlon II X2 — Some instances with index 210e/215/220/225 (characteristic — L2 is 512Kb, not 1024Kb) based on quad-core Deneb or Propus — 3rd and 4th cores + in case of Deneb core — cache L3.
Sempron 130/140/145/150 — second core. nine0137 Athlon X2 5000+ (2.2GHz) and 5200+ — Phenom II X4
Phenom II X4 650T, 840T, 960T and 970 Black Edition (labeled HDZ970FBK4DGR and Athlon II X4 640 labeled ADX640WFK0 II3 — Phenom II3
Motherboard requirements:
phases
2. Chipchet.
— AMD: almost all motherboards with SB710, SB750 southbridges.
— nVidia: GeForce 8200, GeForce 8300, nForce720D, nForce 980 chipsets. But be extremely careful about nVidia chipsets: nVidia started adding NCC support to its chipsets only in 2009. Only ASRock motherboards based on chipsets with native ACC/NCC support allow you to disable the L3 cache, which can be useful on processors with working cores but a broken L3 cache.
No other chipsets support either ACC or NCC. nine0003
Advanced Clock Calibration — original, based on AMD chipsets.
Nvidia Core Calibration — A variation of ACC implemented later by nVidia in its chipsets.
It is not recommended to buy motherboards based on AMD 970/990 specifically for unlocking.
Despite the fact that many manufacturers have implemented the unlock function using their own engineering developments (for example, Asrock UCC, Asus Core Unlocker, etc.).
Unlock process :
To unlock, you just need to activate ACC / NCC in the BIOS of the motherboard. nine0003
Motherboard bios settings:
AsRock
On AMD SB710, SB750 south bridges
Advanced -> Chipset Configuration -> Advanced Clock Calibration
or
OC Tweaker -> Advanced Clock Calibration
L3 Cache Management: L3 Cache Allocation.
Based on nVidia chipsets with NCC support
Advanced -> NVIDIA Core Calibration
Core Management: Active Core Setup.
L3 cache management is an L3 Cache Allocation option.
On UCC motherboards
OC Tweaker -> ASRock UCC
Core Control: CPU Active Core Control.
Asus
South bridge AMD SB710, SB750
Advanced -\u003e CPU Configuration -\u003e Advanced Clock Calibration from Disabled is converted to the desired position. After that, the option Unleashing Mode — Enabled 9 appears0134
Based on nVidia chipset
Advanced -> JumperFree Configuration -> NVIDIA Core Calibration
On motherboards supporting ASUS Core Unlocker technology
Advanced -> ASUS Core Unlocker and CPU Core Activation
Gigabyte
On AMD SB710, SB750 south bridges
MB Intelligent Tweaker(M.
I.T.) -> Advanced Clock Calibration
EC Firmware Selection set to Hybrid, it is recommended to reboot the system. After that, set Advanced Clock Calibration — to Auto or another value as needed.
On motherboards with Gigabyte Auto Unlock Support
Advanced BIOS Features -> CPU Unlock
The CPU Unlock option responsible for unlocking works independently of the CPU core Control option and has only two positions — Enabled and Disabled. It is obvious that with limitedly unlocked processors (some of the cores are broken), a combination of these parameters should be used. nine0134
MSI
On AMD SB710, SB750 south bridges
Cell Menu -> Unlock CPU Core and Advanced Clock Calibration set to Enabled.
Based on nVidia chipsets
Cell Menu -> Nvidia Core Calibration .
On motherboards that support MSI’s Unlock CPU Core
Cell Menu -> Unlock CPU Core
nine0196
Biostar
On AMD SB710, SB750 southbridgesAdvanced -> Advanced Clock Calibration
On motherboards with BIO-unlocKING technology
Advanced -> BIO-unlocKING
Foxconn
On AMD SB710, SB750 south bridgesFox Central Control Unit -> Fox Intelligent Stepping -> Advanced Clock Calibration
nine0196
ECS (EliteGroup)
On AMD SB710, SB750 southbridgesM.I.B. II (MB Intelligent BIOS II) -> Advanced Clock Calibration
Diamond Flower Inc (DFI)
On AMD SB710, SB750 southbridgesGenue BIOS Setting -> CPU Feature -> Advanced Clock Calibratio n
Unlock tricks.
If the first attempt fails, we don’t know why the chip was rejected. nine0137 At the second attempt:
— lower the frequency of NB Core (CPU-NB) to 1400-1800 MHz
— lower the HyperTransport frequency to 1400-1800 MHz
— increase the voltage within the recommended limits on the CPU Core (up to 1.5V), NB Core (up to 1.35 V), memory (up to 1.65V).
Save settings and reboot. We are trying to unlock the processor.
If unsuccessful again and our target was the cores, then disable the L3 cache (if such a setting is available; later you can try to enable it back). If unsuccessful again, then try to disable the processor cores one by one. If unsuccessful, then we try to vary the ACC percentage settings available on SB 710 and SB750 motherboards. If you fail here, then that’s it. There are no other ways to unlock the processor. nine0003If suddenly, after unlocking the processor cores, you observe that in bios the processor is defined as unlocked (kernels, cache on the POST screen, as well as in the characteristics in bios are displayed), but after booting into Windows, the number of processor cores remains unchanged (in CPU-Z, for example), then follow the simple procedure below.
