AMD launches new Ryzen series to address hot markets

Advanced micro-systems AMD has announced the launch of its latest Ryzen Embedded R-Series system-on-chip processors to expand its product portfolio to address new and in-vogue markets.

The new Ryzen processor is purpose-built to address solutions in industrial and robotic systems, machine vision, IoT, and thin client equipment. The Ryzen Embedded R2000 series doubles the core count and improves performance over previous models, with up to 81% better CPU and graphics performance.

The company is constantly improving the performance of its Ryzen processors to meet growing demand, thanks to the growing proliferation of AI and machine learning (ML) in industries such as cloud, gaming and data centers. .

This had a positive impact on AMD’s revenue in the first quarter of 2022 and should contribute to its revenue growth in 2022.

Advanced Micro Devices, Inc. Pricing and Consensus

Advanced Micro Devices, Inc. Price Consensus Chart | Advanced Micro Devices, Inc. Quote

AMD Product Portfolio to Help Boost Stock Prices

AMD shares shed 41.8% against declines in industry Zacks Electronics – Semiconductors and sector Zacks Computer and Technology of 31.1% and 32.3%, respectively, since the start of the year .

The recent fall in stock prices can be attributed to global supply chain challenges in the semiconductor industry, the Russian-Ukrainian war and rising inflation which has caused spending to skyrocket. operating revenue of 62% in the first quarter of 2022.

Negative investor sentiment toward the broader tech industry amid turbulent macros is reflected in the tumble of the tech-heavy NASDAQ index, which drove AMD prices lower.

Additionally, as AMD 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 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.

However, in order to cope with rising inflation, the Federal Reserve announced the largest interest rate hike in 28 years. The Fed expects the move to reduce spending and rekindle traders’ interest in going long, especially in cyclical sectors like technology.

AMD stands to benefit due to its plans to address new markets, accelerate data center growth, and enter the AI ​​and AR spaces with the launch of various new products.

AMD’s strategic acquisitions of Xilinx and Pensando will help the company address its expansion into the uncharted AR space and data centers with its collaborative products.

The recent acquisition of Xilinx has helped AMD collaborate with Metaplatforms META to enter the metaverse.

AMD has become Meta’s ecosystem partner and AMD’s radio chip, Xilinx Zynq UltraScale RFSoC, will be used to develop a Metaverse-ready radio access unit.

Additionally, the company is seeking to capture a significant share of the $300 billion market for high performance and adaptive products.

AMD leads its peers in HPC by forming strategic partnerships to create products that set the bar high enough.

It is worth mentioning that AMD powers five of the ten most powerful supercomputers and eight of the ten most energy-efficient supercomputers in the world.

Recently, AMD partnered with Hewlett-Packard HPE and the US Department of Energy’s Oak Ridge National Laboratory will build the world’s fastest and most energy-efficient supercomputer: Frontier.

The company’s strong product portfolio and strategy to enter new emerging markets such as HPC and metaverse will contribute to its revenue growth. His strategy will have a positive impact on stock prices and generate positive long-term returns.

AMD currently carries a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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