Advanced Micro Devices
AMD
recently collaborated with
Dell Technologies
DELL
to launch the most powerful 17” AMD Advantage laptop — Alienware m17 r5 Gaming Laptop.
The new laptop is integrated with AMD Ryzen 6000 series processors, AMD Radeon™ RX 6000 series graphics, and new AMD Smart Technologies. This laptop has been designed specifically to address the gaming sector as it will feature new display technology — AMD Smartshift Max — to help boost gaming performance and save battery life.
Per
International Data Corporation
(“IDC”), PC sales were down 15.3% year over year to 71.3 million units during the June quarter, which was higher than the first quarter’s decline rate of 5.1% and is the worst drop in many years.
In the 2020-2021 period, PC manufacturers were benefiting from increased demand amid the pandemic-induced remote-working and online learning trend. However, the recent back-to-back declines in PC shipments reflect that this was a momentary boom, and there has been a slump in PC demand.
To counter this issue, AMD has been diversifying its product portfolio to cater to new and trending markets like cloud, gaming and data center.
The company has constantly been improving the performance of its Ryzen processors to help address the increasing proliferation of AI and Machine Learning (ML) in industries like cloud, gaming and data center.
This has impacted AMD’s first-quarter 2022 revenues positively and is expected to aid its 2022 top-line growth.
Advanced Micro Devices, Inc. Price and Consensus
Advanced Micro Devices, Inc. price-consensus-chart
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Advanced Micro Devices, Inc. Quote
AMD Forays Into Gaming Industry to Boost Share Prices
AMD’s shares have slumped 38.2% compared with the Zacks
Electronics – Semiconductors
industry’s and the Zacks
Computer and Technology
sector’s decline of 29.3% and 40.8%, respectively, in the year-to-date period.
The decline was primarily due to the global supply chain challenges that have affected the semiconductor industry, the ongoing Russia-Ukraine war, rising inflation and interest rate hike by the U.S. Federal Reserve, which has led to the recent fall in PC demand as the market slips into recession.
Stiff competition from peers like
NVIDIA
NVDA
remains a concern.
Dell recently launched another gaming laptop Dell G16, which is designed for PC gamers and is powered by NVIDIA RTX graphics card and NVIDIA® GeForce RTX 3070 Ti Laptop GPU. These features put it in direct competition with AMD in the gaming industry.
However, AMD is anticipated to benefit from this due to its plans to address new markets, accelerate data center growth, and enter the AI and AR spaces with its launch of various new products.
Specifically, AMD is expected to benefit from the rising gaming industry that will reach$545.98 billion by 2028 while witnessing a CAGR of 13.20% between 2021 and 2028, per
Fortune Business Insights
.
AMD has been investing heavily in acquisitions, which have been generating positive ROI for the company as these buyouts are helping in addressing uncharted high-margin markets.
As such, AMD’s strategic acquisitions of Xilinx and Pensando will help the company address its expansion in uncharted AR space and data center business with its collaborated products.
The recent buyout of Xilinx has helped AMD collaborate with
Meta Platforms
META
to enter the Metaverse.
AMD has become Meta’s ecosystem partner, and AMD’s radio chip, Xilinx Zynq UltraScale RFSoC, will be utilized to develop a metaverse-ready radio access unit.
The company’s strong product portfolio and the strategy to enter new and emerging markets like Gaming and the Metaverse will aid its revenue growth.
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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