At CES 2021,
Advanced Micro Devices ( AMD Quick Quote AMD - Free Report) unveiled a new class of mobile processors — AMD Ryzen 5000 Series — based on Zen 3 core architecture. The company added that laptops based on AMD Ryzen 5000 Series mobile processors will be available from first-quarter 2021 from leading manufacturers including ASUS, Lenovo and HP Inc ( HPQ Quick Quote HPQ - Free Report) .
AMD Ryzen 5000 Series mobile processors have two categories — AMD Ryzen 5000 H-Series and AMD Ryzen 5000 U-Series. AMD Ryzen 5000 H-Series mobile processors are aimed at improving gaming experiences, noted the chipmaker.
AMD Ryzen 5000 H-Series processors are based on Zen 3 architecture and feature up to 8 core and 16 threads. Per AMD estimates, its Ryzen 9 5980HX processor can deliver up to 23% and 17%, improved single-threaded and multi-threaded performances, respectively, compared with the previous generation.
Meanwhile, AMD Ryzen 7 5800U processor, under its Ryzen 5000 U-Series portfolio, offers 16% and 14%, improved single-threaded and multi-threaded performances, respectively, compared with the previous generation, according to the company estimates. Per AMD, the processor can deliver 17.5 hours of battery life for general use and up to 21 hours of movie playback on one charge.
A Look at Other New Chips
AMD also introduced Ryzen 9 5900 and Ryzen 7 5800 desktop processors, which feature a low thermal design power or TDP of 65W.
AMD also rolled out Ryzen PRO 5000 Series mobile processors, which are expected to be available from the first half of 2021. Furthermore, the company announced that its Ryzen Threadripper PRO Processors are expected to be available directly to consumers from March 2021 through participating retailers, online retailers and system integrators.
These robust features are expected to drive adoption of AMD’s new processors and in turn, will boost the company’s top line in the upcoming days.
Remote Work and Stay-at-Home Trends Underscore Opportunity
The emergence of high-end cloud computing, demand for thinner laptops and faster processing is anticipated to bode well for the newly rolled out chips. Further, remote work, stay at home and online learning have caused a spurt in the demand for PCs, laptops and notebooks. Uptick in video gaming activity across the globe due to the pandemic is also contributing to higher demand for gaming notebooks.
Per a report from
Gartner, PC shipments in fourth-quarter 2020 increased 10.7% year over year to 79.4 million units. In 2020, the PC shipments rose 4.8% year over year to 275 million units owing to higher sales induced by work-from-home and stay-at-home trends.
These trends are unlikely to dissipate in the near term as global vaccination roll out is proving to be a tedious affair. Emergence of new, highly transmissible strain of coronavirus is also keeping people indoors.
The momentum witnessed in PC shipments, driven by work-from-home and stay at home, is likely to continue going ahead. This bodes well for the adoption of AMD’s processors that are designed to cater to gaming and business purposes.
Expert Market Research report, laptop market, worldwide, is forecast to witness a CAGR of 0.5% between 2021 and 2026. The global laptop market in 2020 reached nearly $103 billion, added the report.
However, AMD needs to watch out for competition in the semiconductor space from the likes of
NVIDIA ( NVDA Quick Quote NVDA - Free Report) and Intel ( INTC Quick Quote INTC - Free Report) . Intel, after series of delays, and setbacks, is now working on improving its performance.
At CES 2021, Intel
introduced four new classes of processors — 11th Gen Intel Core vPro processors, N-series 10-nanometer (nm), 11th Gen Intel Core H-series mobile processors along with Intel Pentium Silver and Intel Celeron processors — to enhance performance of PCs across gaming, education, business and mobile spectrums. Zacks Rank & Price Performance
Shares of AMD, which carries a Zacks Rank #3 (Hold), have returned 97.8% in the past year compared with the
industry’s rise of 63.4%.
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