It’s usually a pretty big day when a chip maker like AMD (Nasdaq: AMD) pulls back the curtain to showcase some new innovations. Today, however, was a completely different matter, as AMD stock plunged after unveiling new processors.
First, AMD showed off a new slate of Ryzen PRO 7040 Series mobile processors. Not only does that provide “Zen 4” performance, but also the addition of the Ryzen AI engine to some of the breed of Windows 11 business laptops. A good start, and it’s only going to get better; AMD also introduced the Ryzen PRO 7000 series, which gives the same “Zen 4” performance to desktop users. Also, desktops get access to RDNA 2’s integrated graphics, which should improve many applications. Not yet revealed – but anticipated by many analysts – is the upcoming “AI Superchip”, which will likely prove a match for Nvidia (Nasdaq: NVDA) was introduced recently.
AMD already has many buyers lined up to get their hands on these most powerful chips. In fact, meta platforms (Nasdaq: Meta) is already working with AMD to get the Bergamo processor in, as Meta recently adopted it for use in their own systems. Having Meta on her side would certainly come in handy; AMD is eager to get some market share in the AI space, with Nvidia controlling between 80% and 95% of the field, depending on which analysts you ask.
In general, analysts are generally on the side of AMD. With a rating of 21 Buy and eight hold, AMD stock is a Moderate Buy. However, with an average price target of $112.96, AMD stock also comes with a downside risk of 9.11%.
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