Advanced Micro Devices (AMD - Free Report) commenced the year with a notable display of its latest high-performance processors at the annual Consumer Electronics Show 2020 at Las Vegas.
The new Ryzen 4000 U-Series and H-Series mobile processors integrated with Radeon graphics capabilities to bolster performance of desktop and ultrathin laptops, deserve a special mention.
Per AMD’s tests, Ryzen 7 4800U, featuring 16 threads and 8 cores, enables "18% faster graphics performance" compared to Intel’s (INTC - Free Report) Core i7-1065G7 processor.
Meanwhile, Ryzen 7 4800H, featuring 16 threads and 8 cores, enables 39% improvement in "gameplay physics simulation performance" compared to Intel’s Core i7-9750H processor.
The latest laptop processors are developed on “Zen 2” core architecture utilizing 7nm process technology.
AMD’s latest Ryzen 4000 Series processors are slated to be available in laptops in first-quarter 2020 across global OEM partners.
Robust Processors for Notebooks & High-End Desktops
AMD also unveiled Athlon 3000 series mobile processors, bringing the capabilities of Zen architecture and Radeon Graphics to conventional notebooks. The processors are scheduled to be available across OEMs in early 2020 globally.
The company also announced availability of AMD Ryzen Threadripper 3990X desktop processor featuring 128 threads and 64 cores, from Feb 7, 2020.
The new Ryzen Threadripper processor, priced at $3,990, is developed on Zen core architecture utilizing 7nm process technology. Higher core count of Threadripper 3990WX is expected to provide AMD a competitive edge against Intel in the high-end desktop market (HEDT) considerably.
What Investors Should Know?
AMD is benefiting from robust adoption of the company’s EPYC server and embedded processors, and Ryzen desktop and mobile processors.
Notably, Microsoft’s Surface Laptop 3 15” variant utilizes AMD’s Ryzen Surface Edition processor for advanced graphics performance.
Growing clout of AMD’s processors is instilling investor confidence in the stock, which is evident from its robust price performance. The company’s shares have skyrocketed 135.3% in the past year, significantly outperforming industry’s growth of 56.6%.
We believe that the emergence of high-end cloud computing, thinner laptops, and demand for fast processing will bode well for the newly introduced CPUs.
Furthermore, increasing adoption of AI techniques and ML tools and initiatives to boost workplace productivity are primarily responsible for driving high-end desktops and laptops processors.
We believe product innovation and roll out of processors utilizing 7nm technology will help AMD increase market share further against Intel, going forward.
The new processors are anticipated to help the company to capitalize on emerging BYOD market, enterprise productivity and ed-tech verticals, in the days ahead.
Zacks Rank & Key Picks
AMD currently has a Zacks Rank #3 (Buy).
Some better-ranked stocks in the broader sector are Fortinet, Inc. (FTNT - Free Report) and Keysight Technologies Inc. (KEYS - Free Report) . Both the stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Fortinet and Keysight is currently pegged at 14% and 9.1%, respectively.
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