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AMD Introduces New Radeon GPUs to Support Gaming Laptops
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Advanced Micro Devices (AMD - Free Report) recently introduced its latest portfolio of Radeon RX 7000 Series Graphics for gaming laptops.
The Series Graphics offer up to 32 new unified compute units, 32MB of second-generation AMD Infinity Cache technology, 8GB of high-speed GDDR6 memory with up to a 128-bit memory interface and dedicated AI and raytracing hardware.
These also support AI-accelerated video encoding and hardware-accelerated AV1 encoding1, AMD FidelityFX Super Resolution (FSR) and AMD Radeon Super Resolution (RSR) upscaling technologies for providing 26% higher performance on average than previous generation Radeon graphics.
Several OEM partners like Alienware, ASUS, Emdoor and IP3 laptops will deliver AMD Advantage Edition laptops beginning in the first half of 2023. AMD’s recent offering reflects the company’s strategy tokeep benefiting from high-growth business segments like high-performance computing and gaming.
High inflation, rising interest rate hikes and uncertain forex situation led the broader tech sector into the doldrums, reflected by AMD’s peers NVIDIA (NVDA - Free Report) and Intel (INTC - Free Report) , which also bore the brunt of the situation.
AMD reported third-quarter 2022 revenues of $5.7 billion, an increase of 29% year over year.
The results reflect lower-than-expected client segment revenues owing to reduced processor shipments due to weaker demand in the PC market and significant inventory correction actions across the PC supply chain, given the rising inflation and risks of a recession.
In order to deal with the slowing demand for PCs, AMD is developing its processors to cater to gamers and high-performance computing.
AMD has constantly been improving the performance of its Ryzen, Xilinx and Pensando processors to help address the increasing proliferation of Artificial Intelligence (AI) and Machine Learning in industries like cloud, gaming and data center.
However, as it ventures into new markets, the company faces rising competition from the likes of NVIDIA and Intel.
AMD’s OEM partner Dell previously launched a gaming laptop Dell G16, which is designed for PC gamers and is powered by NVIDIA RTX graphics card and NVIDIA GeForce RTX 3070 Ti Laptop GPU. These features put it in direct competition with AMD in the gaming industry.
Intel is still the leading name in the consumer PC market and is the major competitor of AMD in this segment. INTC is gradually reducing its dependence on the PC-centric business by transitioning to data-centric businesses such as AI and autonomous driving.
Nevertheless, AMD, which currently has a Zacks Rank #3 (Hold), is anticipated to benefit from this due to its plans to address new markets, accelerate data center growth and enter the AI and AR spaces with the launch of various new products. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Specifically, AMD is expected to benefit from the rising gaming industry, which will reach $545.98 billion by 2028, witnessing a CAGR of 13.20% between 2021 and 2028, per Fortune Business Insights.
AMD has been investing heavily in acquisitions, which have been generating positive ROI for the company as these buyouts are helping in addressing uncharted high-margin markets.
As such, AMD’s strategic acquisitions of Xilinx and Pensando will help the company address its expansion in uncharted AR space and data center business with its collaborated products.
The recent buyout of Xilinx has helped AMD collaborate with Meta Platforms (META - Free Report) to enter the Metaverse.
AMD has become Meta’s ecosystem partner, and AMD’s radio chip, Xilinx Zynq UltraScale RFSoC, will be utilized to develop a metaverse-ready radio access unit.
The company’s strong product portfolio and the strategy to enter new and emerging markets like Gaming and the Metaverse will aid its revenue growth.
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AMD Introduces New Radeon GPUs to Support Gaming Laptops
Advanced Micro Devices (AMD - Free Report) recently introduced its latest portfolio of Radeon RX 7000 Series Graphics for gaming laptops.
The Series Graphics offer up to 32 new unified compute units, 32MB of second-generation AMD Infinity Cache technology, 8GB of high-speed GDDR6 memory with up to a 128-bit memory interface and dedicated AI and raytracing hardware.
These also support AI-accelerated video encoding and hardware-accelerated AV1 encoding1, AMD FidelityFX Super Resolution (FSR) and AMD Radeon Super Resolution (RSR) upscaling technologies for providing 26% higher performance on average than previous generation Radeon graphics.
Several OEM partners like Alienware, ASUS, Emdoor and IP3 laptops will deliver AMD Advantage Edition laptops beginning in the first half of 2023. AMD’s recent offering reflects the company’s strategy tokeep benefiting from high-growth business segments like high-performance computing and gaming.
Advanced Micro Devices, Inc. Price and Consensus
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
AMD Boosting Top Line by Addressing High-Growth Markets
AMD shares slumped 21.4% compared with the Zacks Electronics - Semiconductors industry’s and the Zacks Computer and Technology sector’s decline of 4.6% and 12%, respectively, in the past six months.
High inflation, rising interest rate hikes and uncertain forex situation led the broader tech sector into the doldrums, reflected by AMD’s peers NVIDIA (NVDA - Free Report) and Intel (INTC - Free Report) , which also bore the brunt of the situation.
AMD reported third-quarter 2022 revenues of $5.7 billion, an increase of 29% year over year.
The results reflect lower-than-expected client segment revenues owing to reduced processor shipments due to weaker demand in the PC market and significant inventory correction actions across the PC supply chain, given the rising inflation and risks of a recession.
In order to deal with the slowing demand for PCs, AMD is developing its processors to cater to gamers and high-performance computing.
AMD has constantly been improving the performance of its Ryzen, Xilinx and Pensando processors to help address the increasing proliferation of Artificial Intelligence (AI) and Machine Learning in industries like cloud, gaming and data center.
However, as it ventures into new markets, the company faces rising competition from the likes of NVIDIA and Intel.
AMD’s OEM partner Dell previously launched a gaming laptop Dell G16, which is designed for PC gamers and is powered by NVIDIA RTX graphics card and NVIDIA GeForce RTX 3070 Ti Laptop GPU. These features put it in direct competition with AMD in the gaming industry.
Intel is still the leading name in the consumer PC market and is the major competitor of AMD in this segment. INTC is gradually reducing its dependence on the PC-centric business by transitioning to data-centric businesses such as AI and autonomous driving.
Nevertheless, AMD, which currently has a Zacks Rank #3 (Hold), is anticipated to benefit from this due to its plans to address new markets, accelerate data center growth and enter the AI and AR spaces with the launch of various new products. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Specifically, AMD is expected to benefit from the rising gaming industry, which will reach $545.98 billion by 2028, witnessing a CAGR of 13.20% between 2021 and 2028, per Fortune Business Insights.
AMD has been investing heavily in acquisitions, which have been generating positive ROI for the company as these buyouts are helping in addressing uncharted high-margin markets.
As such, AMD’s strategic acquisitions of Xilinx and Pensando will help the company address its expansion in uncharted AR space and data center business with its collaborated products.
The recent buyout of Xilinx has helped AMD collaborate with Meta Platforms (META - Free Report) to enter the Metaverse.
AMD has become Meta’s ecosystem partner, and AMD’s radio chip, Xilinx Zynq UltraScale RFSoC, will be utilized to develop a metaverse-ready radio access unit.
The company’s strong product portfolio and the strategy to enter new and emerging markets like Gaming and the Metaverse will aid its revenue growth.