AMD Expands Portfolio With Radeon PRO Graphics Card Launch
Advanced Micro Devices AMD is expanding its Radeon portfolio with the recently announced launch of Radeon PRO W7000 Series graphics cards built on its advanced chiplet design. Built on RDNA 3 architecture, AMD’s Radeon PRO W7900 and Radeon PRO W7800 graphics cards are designed for extreme workloads.
Radeon PRO W7000 Series graphics cards support DisplayPort 2.1, which offers three times the maximum total data rate compared with DisplayPort 1.4, thereby delivering a superior visual experience, higher resolutions and more available colors.
Built on RDNA 3 architecture, AMD’s Radeon PRO W7900 and Radeon PRO W7800 graphics cards are designed for extreme and heavy workloads, respectively. Performance-wise, while Radeon PRO W7900 features 61 TFLOPS (FP32), Radeon PRO W7800 features 45 TFLOPS (FP32).
Moreover, Radeon PRO W7900 and Radeon PRO W7800 include 48 GB and 32 GB of GDDR6 memory, respectively.
AMD’s 2023 Prospects Not So Bright
AMD is riding on an expanding partner base and strong demand for EPYC, Radeon and Ryzen processors. Moreover, acquisitions, including Xilinx and Pensando, have diversified its business.
Advanced Micro Devices, Inc. Price and Consensus
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
The company’s shares have gained 42.1%, outperforming the Zacks Computer and Technology sector’s return of 19.9% and the Zacks Electronics- Semiconductors industry’s gain of 20.7%. It has also outperformed its closest peer Intel INTC but lagged NVIDIA NVDA.
Shares of Intel and NVIDIA have gained 21.6% and 81.1%, respectively.
However, AMD is expected to suffer from a weak PC market in 2023. It expects first-quarter 2023 revenues of $5.3 billion (+/-$300 million), indicating a year-over-year decline of 10%.
It expects to witness growth in the Embedded and Data Center segments, partially offset by a decline in the Client and Gaming segment.
Sequentially, the Embedded segment's revenues are expected to increase. The Client and Gaming segment's revenues are expected to decline, largely consistent with seasonality. Data Center revenues are expected to decline due to elevated levels of inventory with some cloud customers.
The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 56 cents per share, unchanged over the past 30 days. The consensus mark for revenues stands at $5.30 billion, indicating a year-over-year decline of 9.89%.
For 2023, AMD expects Embedded and Data Center revenues to grow year over year due to a strong portfolio. Moreover, it expects the Client and the Gaming segment's revenues to decline due to the current demand environment.
Zacks Rank & A Key Stock to Consider
AMD currently has a Zacks Rank #3 (Hold).
Lattice Semiconductor LSCC, which sports a Zacks Rank #1 (Strong Buy), is a stock worth considering in the Zacks Electronics- Semiconductors industry. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lattice is set to report first-quarter 2023 results on May 1. It expects revenues between $175 million and $185 million for the to-be-reported quarter.
The Zacks Consensus Estimate for LSCC’s first-quarter 2023 earnings is pegged at 50 cents per share, unchanged over the past 30 days. The consensus mark for revenues stands at $179.9 million, indicating year-over-year growth of 19.54%.
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