Advanced micro-systems AMD recently launched its Ryzen 7020 and Athlon 7020 line of processors. The new processors powered by the Zen 2 core architecture and featuring AMD RDNA 2 graphics are designed to provide laptop users with high-end performance with extended battery life.
AMD has created new processors to meet the needs of today’s laptop users. According to a recent AMD survey, 90% of laptop users need a laptop on the go and use it on battery power for nearly three hours. Moreover, a third of them use it on battery power for 10 hours. The new Ryzen processors offer 58% faster multitasking and 31% faster application launch speed than the AMD Ryzen 3 7320U processor.
AMD has also collaborated with Microsoft MSFT to develop the security system for new processors.
Microsoft co-engineered with AMD to enable processors with Windows 11 software and the Microsoft Pluto Security Processor for full Windows 11 support.
AMD’s strategic decision to develop Ryzen processors for laptops with better battery life is already having a positive impact on revenue growth. In the second quarter, AMD reported customer segment revenue of $2.2 billion, up 25% year-over-year, driven by a richer mix of Ryzen mobile processor sales.
Advanced Micro Devices, Inc. Pricing and Consensus
Advanced Micro Devices, Inc. Price Consensus Chart | Advanced Micro Devices, Inc. Quote
Expand Product Portfolio to Boost AMD Share Price
AMD shares shed 48.2% against declines in the Zacks Electronics – Semiconductors industry and the Zacks Computer and Technology sector of 34.1% and 33%, respectively, year-to-date.
The recent slump in stock prices can be attributed to global supply chain challenges in the semiconductor industry, the Russian-Ukrainian war, and rising inflation which has increased spending on AMD operating growth of 71.8% in the second quarter of 2022.
In addition, as it ventures into new markets, the company faces increasing competition from NVIDIA NVDA.
NVIDIA competes with AMD in the high performance computing (HPC) market. NVIDIA’s Grace CPU superchips have benefited from the rapid proliferation of AI as the company expands its base in untapped markets like climate science, energy research, space exploration and computational biology.
Nonetheless, AMD stands to benefit from its plans to address new markets, accelerate data center growth, and enter the AI and augmented reality spaces with the launch of various new products by establishing strategic partnerships. with companies such as Dell Technologies DELL and OEM (Original Equipment Manufacturer) partners Hewlett Packard, Acer and Lenovo.
At the end of July, AMD collaborated with Dell to launch the most powerful 17″ AMD Advantage laptop – the Alienware m17 r5 gaming laptop. The collaboration will help AMD benefit from the booming gaming industry which will reach 545 $.98 billion by 2028, growing at 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 from Q4 2022.
AMD, which currently has Zacks rank No. 3 (Hold), provided a strong 2022 revenue forecast supported by growing demand for its products. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMD expects Q3 2022 revenue to be $6.7 billion (+/- $200 million), indicating 55% year-over-year growth. For 2022, AMD expects revenue to grow 60% year-over-year to $26.3 billion (+/- $300 million). For the third quarter, Zacks’ consensus estimate for revenue is pegged at $6.71 billion, representing 55.2% year-over-year growth.
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