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AMD Unveils Radeon RX 5500 Series to Boost Gaming Experience

Zacks Equity Research

Advanced Micro Devices AMD recently unveiled its new Radeon RX 5500 Series designed to deliver smooth gameplay in 1080p.

Notably, the series includes RX 5500 graphics card powered by the latest “RDNA” architecture that supports AAA and e-sports titles, giving it the desired speed for optimal graphics solutions required in notebooks and desktops.

Additionally, the graphics card provides up to 37% faster performance than competing chips. The product will be available in desktop gaming PCs from various manufacturers including HP HPE, Acer and Lenovo starting next month.

Radeon RX 5500 offers up to 1.6 times gaming performance per watt than other Radeon graphics cards and uses the Graphics Core Next architecture.

Notably, the company has also introduced Radeon RX 5500M GPU with 7nm technology for notebook PCs. The new line of GPUs includes several technologies, including Radeon Image Sharpening, AMD FidelityFX and Radeon Anti-Lag.

Additionally, Radeon RX 5500M GPU delivers up to 60+ FPS in select AAA titles and up to 90+ FPS in select e-sports games.

Moreover, users with laptops configured with the Radeon RX 5500M GPU can enjoy mobile gaming with up to 30% faster performance on average than other competing products.

Per an announcement, MSI is expected to launch the world’s first gaming powered by AMD’s Ryzen processors and Radeon RX 5500M GPUs later this month.

AMD stock has returned 52.9% year to date, substantially outperforming the industry’s rally of 18.3%.

Year-to-date Performance



AMD’s Radeon Gaming Bundle

AMD launched Radeon Raise the Game bundle with RX 5500 Series. Video gamers get free access to newly released games like Take-Two’s TTWO Borderlands 3 or Tom Clancy’s Ghost Recon Breakpoint with the purchase of select pre-configured desktop and notebook systems powered by Radeon RX 5500 and RX 5500M graphics.

Additionally, AMD’s Xbox Game Pass bundle has also been added to Raise the Game offerings for PC gamers using Radeon RX 5500 series, enabling players with free access to more than 100 PC games for three months.

Growing Competition

AMD is foraying into the high-end graphics card market with the latest offerings. Consequently, AMD’s revenues are poised to benefit significantly if the latest GPU can cater to the rising demand of users.

The gaming market is projected to hit $174 billion by 2021 from $134.9 billion estimated in 2018, per a report by Newzoo.

Notably, growth in the gaming hardware market is driving demand for graphics processors as well. Per Allied Market Research report, the GPU market is anticipated to reach $157.1 billion by 2022 at a CAGR of 35.6% from 2016 to 2022.

Moreover, the company’s move to improve its processor portfolio strengthens its competitive position against the likes of NVIDIA NVDA.

We believe that the launch of the new graphics card will aid AMD increase its market share further.

However, NVIDIA’s upcoming graphics cards GeForce GTX 1660 Super & GeForce GTX 1650 Ti, slated for launch later this month, are expected to intensify competition for AMD’s RX 5500 graphics card.

Zacks Rank

AMD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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