Advanced Micro Devices, Inc. (AMD - Free Report) recently unveiled Radeon Pro VII graphics card, which is designed to meet the needs of visual designers and engineers.
The graphics card has enhanced performance capabilities that are designed to handle complex media and broadcasting projects, development of high-performance computing (HPC) applications and computer aided engineering (CAE) simulations.
The Radeon Pro VII model features 16GB of high-speed HBM2 (High Bandwidth Memory) and can support 6x synchronized displays and high-bandwidth PCIe 4.0 interconnect technology.
These robust features are expected to drive adoption of the new Radeon Pro VII in the market, which will boost AMD’s revenues in the quarters ahead.
Notably, shares of AMD have returned 13.8% in the year-to-date period against the industry’s decline of 6.1%.
Advanced Micro Devices Inc Price and Consensus
Robust Capabilities and Product Enhancements
The Radeon Pro VII card has up to 6.5 TFLOPS (FP64) of double precision performance. Radeon Pro VII is also the first workstation graphics card to feature AMD Infinity Fabric Link technology.
Infinity Fabric Link enables GPU-to-GPU communications in multi-GPU system configurations to accelerate application data throughput. Moreover, the graphics card boasts up to 5.25x PCIe 3.0 x16 of bandwidth with a communication speed of up to 168 GB/s peer-to-peer between GPUs.
The AMD Radeon Pro VII model is priced at $1,899 and is expected to be available from mid-June.
The company also released the Radeon Pro Software for Enterprise 20.Q2 driver, which offers 14% year-over-year performance improvement over current-gen Radeon Pro Cards.
AMD also released updates for its rendering engine — AMD Radeon ProRender — which adds new plugins for SideFX Houdini and Unreal Engine as well as updated plug-ins for Autodesk Maya and Blender. The plug-ins will allow the graphics applications to make use of AMD’s enhanced rendering technology.
Solid Momentum of AMD Pro GPUs Holds Promise
AMD’s growing portfolio of AMD Pro graphics cards bodes well as the company is witnessing robust traction for the same.
Notably, the company’s Pro series GPUs have enjoyed strong popularity among the industry’s top workstation OEMs like Dell and HP. These companies feature AMD Pro graphics cards in most of their mobile and desktop workstations.
Moreover, the company’s Radeon Pro 5300M and 5500M mobile GPUs features in Apple’s (AAPL - Free Report) entry level MacBook Pro 16 series. Additionally, the company’s 2019 MacBook Pro’s can now be upgraded with Radeon Pro W5700X GPUs.
Further, the AMD Radeon Pro MxGPU (multiuser GPU) is used by Amazon’s (AMZN - Free Report) cloud computing division Amazon Web Service (AWS) to power its graphics design instance type on Amazon AppStream 2.0.
The growing clout of Radeon Pro GPUs bode well for AMD. This is likely to drive the company’s top-line in the upcoming days. Moreover, this trend is likely to continue, driven by rapid growth in the global workstations market that is expected to witness a CAGR of 9.8% by 2023 per MarketWatch data.
Stiff Competition Amid COVID-19 Likely to Dampen Growth
Although AMD’s strengthening Radeon Pro portfolio holds promise, intense competition from NVIDIA (NVDA - Free Report) in the professional GPU market is a concern.
Notably, NVIDIA’s Quadro series GPUs with RTX technology feature real-time ray tracing, advanced shading, and AI-enhanced tools. These GPUs have witnessed solid traction among mobile workstation OEMs like Acer, ASUS and Lenovo. NVIDIA Quadro GPUs have also powered the visuals for every nominee for Best Visual Effects at the 92nd annual Academy Awards.
Further, growing uncertainty in the market due to the coronavirus pandemic could become an impediment to AMD’s growth. Also, increasing expenses on product development are expected to keep margins under pressure.
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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