Advanced Micro Devices AMD has recently ramped up its PRO processor & GPU portfolio, which in turn will strengthen its competitive position and bolster foothold in computing, gaming and visualization technologies.
With this move, the company expanded its latest second generation AMD Ryzen series PRO mobile processors and AMD Athlon series PRO mobile processors with Radeon Vega graphics cards.
These updated versions will provide power-efficient performance, security features with more reliability giving it the desired speed for optimal graphics solutions required for notebooks and desktops.Based on the AMD Radeon Graphics Processing Units (GPUs), these cards are ideal for gamers who require superior graphic performance and high-quality visual experiences.
Per Moshkelani, senior vice president and general manager of AMD, “With AMD Ryzen PRO and Athlon PRO mobile processors, AMD delivers the right performance, features, and choice to OEMs and commercial users, combined with the productivity, protection, and professional features needed to ensure seamless deployment throughout an organization.”
AMD Athlon 300 series mobile processors, which are developed on Zen 3 core architecture, are budget friendly and cater to various demands of consumers. AMD Ryzen 3000 series mobile processors feature 12nm technology for ultrathin laptops and notebooks, and offers longer battery to keep pace with consumer’s needs.
Further, AMD Ryzen 3000 series and Athlon 300 series features higher core count which is anticipated to bolster the competitive position of AMD against Intel INTC.
Per company’s laboratory tests, the new processor offers approximately 14% faster content creation compared with the previous version of AMD Radeon Vega graphics card.
The new AMD PRO processors are loaded with robust technologies to enhance experience of the end user. These enhanced features persuaded notable game developers and partners to select AMD Radeon graphics card.
The company’s move to augment its PRO processor portfolio reinforces its competitive position against the likes of NVIDIA NVDA. AMD stock has returned 177.4% year over year, substantially outperforming the industry’s rally of 21.2%.
What Investors Should Know?
Notably, growth in the gaming hardware market is driving demand for graphics processors as well. Per Allied Market Research, the GPU market is anticipated to reach $157.1 billion by 2022 at a CAGR of 35.6% from 2016 to 2022.
Furthermore, increasing adoption of AI techniques and machine learning tools in industries like gaming, automotive and blockchain are primarily responsible for driving GPU demand. AMD is benefiting from this demand.
We believe that the launch of the new graphics card will help AMD increase its market share further.
Zacks Rank & Key Pick
AMD currently has a Zacks Rank #4 (Sell).
A better-ranked stock in the broader technology sector is Cadence Design Systems, Inc. CDNS, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Cadence is projected to be 12%.
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