It’s finally here. For the first time in three years,
Small instruments of the future
Its processor lineup will take the process of building a new chip, which could enable the semiconductor company to add recent gains against its main competitors.
On Monday, AMD (ticker: AMD) unveiled its Ryzen 7000 series at the trade show Computex 2022. Based on a new architecture called “Zen 4”, the chips will offer a double-digit percentage increase in performance compared to what it now offers, AMD said.
The new products, to be available this autumn, will use Taiwan Semiconductor Manufacturing (TSM) 5-nanometer chip-manufacturing process, marking one step ahead of existing processors, which have been built on 7nm nodes since 2019. Small-nanometer manufacturing processes have historically allowed semiconductor companies to produce higher, more energy-efficient chips.
AMD has also unveiled a new motherboard platform called AM5 for the new processor. The AM5 will support a number of new features, including DDR5 and PCI Express 5.0 technology, enabling faster memory and storage performance, respectively.
The availability of that motherboard platform will offer a boost to memory makers like Micron Technology (MU). DDR5 memory is highly valued and contains DDR4 vs. more advanced technology.
In anticipation of AMD’s announcement, Bank of America analyst Vivek Arya was optimistic that the company would be able to acquire shares in multiple product divisions. On Sunday, he restored his buy rating and the মূল্য 160 price target on the stock. “The combination of AMD design agility, proven management performance, consistency of roadmap and strong foundry volume / cost support can help double the potential. [AMD’s] PC + server revenue sharing, “he wrote.
AMD shares rose slightly to 93.71 in Monday’s trading.
It was a rough year for investors at AMD as fears of a weak PC market and a slower global economy hit its share price. AMD stock is down 35% this year, compared to a 27% drop in iShares semiconductor ETF (Ticker: SOXX), which tracks the performance of the ICE semiconductor index.
It comes as the chip maker wins the market. According to Mercury Research, AMD gained about seven percentage points from Intel (INTC) in the X86 processor market in the first quarter compared to the previous year.
If that trend continues, fueled by AMD’s new lineup, it will eventually boost the stock.
Enter Tae Kim at [email protected]