AMD Expands Portfolio With New Processors and Graphics Card
Advanced Micro Devices AMD launched the new line-up of processors and graphics card with AMD Ryzen and Athlon 7020 C-Series processors and AMD Radeon RX 7600 graphics card.
Built on 6nm technology, the AMD Ryzen and Athlon 7020 C-Series processors are designed to bring modern performance and technologies to everyday Chromebooks.
It leverages on AMD’s Zen 2 architecture and RDNA 2 integrated graphics to deliver fast and responsive performance meant for modern productivity and multitasking workloads common to educational and front-line workloads.
The New Radeon RX 7600 graphics card delivers high performance gaming, streaming and content creation. Built on AMD RDNA 3 architecture, it enables gamers to play the latest titles at 60+ FPS at 1080p and stream in high fidelity with AV1 technology.
Advanced Micro Devices, Inc. Price and Consensus
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It accelerates AI and content creation application performance over previous generation with features like ultra-HD encoding, AMD Radiance Display Engine, and AMD FidelityFX Super Resolution technology.
Strong Product Portfolio to Aid AMD’s Prospects
AMD gains from a strong product portfolio operating in Data Center, Client, Gaming and Embedded Segments. Its RDNA processor architecture uplifts the performance, scalability and efficiency of various AMD processors and graphic cards.
AMD’s shares have increased 67.1% year to date compared with the Zacks Computer and Technology sector’s rise of 25.4% in the same time frame.
The recent outperformance can be attributed to strong demand for its EPYC, Radeon and Ryzen processors in various end-markets. Strengthening of PC and server markets and continued product launch have been major tailwinds.
AMD expects its Embedded revenues to grow year over year in second-quarter 2023. Success in the embedded market is built on its differentiated and scalable offerings that address varied power, performance and environmental requirements.
AMD Faces Stiff Competition
AMD faces stiff competition in CPU, GPU and Embedded segments from enterprises like Intel Corporation INTC, NVIDIA NVDA and Microchip Technology MCHP hurting AMD’s product demand and growth prospects.
The company reported first-quarter 2023 revenues of $5.35 billion which decreased 9.1% year over year.
Shares of Intel, NVDA and Microchip have increased 9.7%, 109% and 4.8% year to date, respectively.
AMD expects its Embedded and Gaming segment revenues to decline sequentially. It suffers from strong competition in its FPGA and ASIC-equipped processors in the embedded segment by Intel and Microchip.
AMD also expects its Client, Gaming and Data Center segment revenues to decline year over year due to the current demand environment. It suffers from strong competition in its high-end GPU market with market leaders like NVIDIA, lowering its gaming graphics sales.
This Zacks Rank #3 (Hold) company expects second-quarter 2023 revenues of $5.3 billion (+/-$300 million), indicating a year-over-year decline of 19%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $5.32 billion, indicating an 18.73% decline from the year-ago quarter’s reported figure.
The consensus mark for second-quarter 2023 earnings remained unchanged at 57 cents per share in the past 30 days, indicating a year-over-year decline of 45.71%.
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