AMD Ryzen 7 May Keep the AMD Stock Momentum Going
Advanced Micro Devices, Inc. (NASDAQ:AMD) stock is in the limelight on the news of its new “AMD Ryzen 7” chip that is said to be better in price and performance than the similarly configured chip by its big competitor, Intel Corporation (NASDAQ:INTC).
AMD stock gained two percent on Wednesday and closed at $14.28.
On Wednesday, AMD announced the global launch of the “Ryzen 7” desktop processors, giving details about the launch date, pricing, and performance, which signals that the company may have a winner on its hands. (Source: “Innovation and Competition Return to High-Performance PCs March 2nd with Worldwide AMD Ryzen 7 Availability,” Advanced Micro Devices, Inc., February 22, 2017.)
AMD outlined the Ryzen 7 desktop processor lineup at the event, explaining that these processors are specifically designed for personal computer (PC) gamers, enthusiasts, and creators. The processor features 8-cores, 16-threads, and the new “AM4” desktop platform. What is significant is that the product demonstrations featured “Ryzen 7 1800x” outperforming a similarly configured and higher priced “Intel Core i7-6900K.”
Intel stock ended the last trading session at $36.07, down by 1.2%. If AMD’s Ryzen 7 gets more favorable reviews later this month, Intel will have a real challenge to handle, and AMD stock may get a further push.
AMD president and CEO Lisa Su said, “Four years ago we began development of our ‘Zen’ processor core with the goal to deliver unprecedented generational performance gains and return choice and innovation to the high-performance computing market.” With the release of the Ryzen 7, the chipmaker has a good chance of capturing the high-end desktop and gaming market. (Source: Ibid.)
After posting a phenomenal full-year 2016, AMD is on its way to further strengthen its position this year. The Ryzen 7 desktop processor family comes at a fraction of the cost of Intel chips and is claimed to be ahead in performance.
AMD stock posted triple-digit returns in 2016. But, with most of the positives priced in by investors now, the focus is on how the company positions itself to capitalize on the opportunities in the new growth markets like data centers and servers.
The chipmaker’s focus on potentially high-growth fields like gaming, immersive platforms, and data centers is likely to set the stage for higher gains in the future. However, the company has to execute well before AMD stock can start posting impressive returns again.
AMD is in a better financial position today than it was in 2015, and there is excitement surrounding its upcoming “Vega GPU.” Investors will be looking forward to reading the Ryzen reviews expected at the end of this month, and seeing the current-quarter results later. This is a wait-and-watch time for AMD stock, and the second quarter will be very significant for the company.