Advanced Micro Devices AMD recently launched its Ryzen 7020 series and Athlon 7020 series processor lineup. The new processors powered by the Zen 2 core architecture and featuring AMD RDNA 2 graphics are designed to offer laptop users high-end performance with extended battery life.
AMD has created new processors to address the current needs of laptop users. Per a recent survey by AMD, 90% of laptop users need a laptop on the go and use it on battery life for almost three hours. Also, one-third of them use it on battery life for 10 hours. The new Ryzen processors provide 58% faster multitasking and 31% faster application launch speed than the AMD Ryzen 3 7320U CPU.
AMD has also collaborated with Microsoft MSFT to develop the security system for the new processors.
Microsoft has co-engineered with AMD to enable the processors with Windows 11 software and Microsoft Pluton security processor for full support for Windows 11.
AMD’s strategic decision to develop Ryzen processors for laptops with better battery life is already impacting the topline growth positively. In the second quarter AMD reported client segment revenue of $2.2 billion, which was up 25% year over year, driven by a richer mix of Ryzen mobile processor sales.
Advanced Micro Devices, Inc. Price and Consensus
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
Expanding Product Portfolio to Boost AMD Stock Price
Shares of AMD have lost 48.2% compared with the Zacks Electronics - Semiconductors industry’s and the Zacks Computer and Technology sector’s declines of 34.1% and 33%, respectively, in the year-to-date period.
The recent fall in share prices can be attributed to global supply chain challenges in the semiconductor industry, the Russia-Ukraine war and increasing inflation that raised AMD’s operating expenses by 71.8% in the second-quarter of 2022.
Further, as it ventures into new markets, the company faces rising competition from the likes of NVIDIA NVDA.
NVIDIA is giving AMD tough competition in the high-performance computing (HPC) market. NVIDIA’s Grace CPU superchips have been benefiting from the rapid proliferation of AI while the company is expanding its base in untapped markets like climate science, energy research, space exploration and digital biology.
Nevertheless, AMD is expected to benefit from its plans to address new markets, accelerate data center growth, and enter the AI and Augmented Reality spaces with its launch of various new products by building strategic partnerships with companies like Dell Technologies DELL and original equipment manufacturer (OEM) partners Hewlett Packard, Acer and Lenovo.
In late July, AMD collaborated with Dell to launch the most powerful 17” AMD Advantage laptop — Alienware m17 r5 Gaming Laptop. The collaboration will help AMD benefit from the rising gaming industry that will attain $545.98 billion by 2028, witnessing a CAGR of 13.20% between 2021 and 2028, according to Fortune Business Insights.
AMD Ryzen 7020 Series processors will support laptops from HP, Lenovo and Acer. These will be available from OEM partners starting fourth-quarter 2022.
AMD, which currently has Zacks Rank #3 (Hold), provided strong 2022 guidance for revenues backed by rising demand for its products. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMD expects third-quarter 2022 revenues to be $6.7 billion (+/-$200 million), which indicates year-over-year growth of 55%. For 2022, AMD expects revenues to increase 60% year over year to $26.3 billion (+/-$300 million). For the third quarter the Zacks Consensus Estimate for revenues is pegged at $6.71 billion representing year over year growth of 55.2%.
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