It’s usually a good day when a chipmaker like AMD (NASDAQ:AMD) pulls back the curtain to reveal some new innovations. Today, however, is a completely different matter, as AMD stock has slipped after unveiling new processors.
First, AMD presented its new slate of Ryzen PRO 7040 Series mobile processors. Not only does that provide “Zen 4” performance but also the addition of a Ryzen AI engine for at least some breeds of Windows 11-powered business-grade laptops. A good start, and it gets better; AMD also launched the Ryzen PRO 7000 series, which provides the same “Zen 4” performance to desktop users. Also, desktops get access to RDNA 2 integrated graphics, which should improve some applications. Not yet revealed—but expected by some analysts—is the upcoming “AI Superchip,” which will likely prove a match for what Nvidia (NASDAQ:NVDA) was launched recently.
AMD already has several buyers lined up for these more powerful chips. In fact, Meta Platforms (NASDAQ:META) is already working with AMD to get its hands on the Bergamo processor, as Meta recently adopted it for use in its own systems. Getting the Meta on its side will certainly help; AMD is eager to gain some market share in the AI space, where Nvidia controls between 80% and 95% of the field, depending on which analysts you ask.
In general, analysts are generally on AMD’s side. With 21 Buy ratings and eight Holds, AMD stock is considered a Moderate Buy. However, with an average price target of $112.96, AMD stock also has 9.11% downside risk.
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