Chipmaker Advanced Micro Devices says its latest desktop computer processors will widen its lead over rival Intel in performance and energy efficiency. But AMD stock fell on Tuesday.
AMD introduced its Ryzen 7000 Series desktop processors at an event late Monday in Austin, Texas. The new chips are the world's first 5-nanometer processors for PCs. Circuit widths on chips are measured in nanometers, which are one-billionth of a meter. Intel's top-of-the-line chips are made at 10-nanometer scale.
Contract chipmaker Taiwan Semiconductor Manufacturing is making the new chips for AMD.
AMD's high-end desktop processors are targeted at gamers, content creators and other users who crave higher performance. The Ryzen 7000 Series chips will be available starting Sept. 27.
The new processors come in four versions. The entry-level chip has six processing cores and costs $299. The top model has 16 cores and costs $699.
AMD presented test data on Monday that shows that its latest chips outperform those from Intel in speed and energy efficiency.
AMD Stock Slide Continues
On the stock market today, AMD sank 1.8% to close at 86.94. Shares fell for the third straight trading day.
Earlier in the session, AMD stock fell below its 50-day moving average line, a key support level.
AMD's Ryzen 7000 Series desktop processors will offer significant improvements over its prior generation of chips, produced at 7-nanometer scale, Deutsche Bank analyst Ross Seymore said in a note to clients. The new chips also should deliver performance ahead of Intel's Alder Lake processors, launched last year, he said.
"Overall, we believe this launch will help reaccelerate AMD's gains in the desktop CPU (central processing unit) segment, although the duration of this reacceleration will be highly dependent upon the timing/performance of Intel's upcoming Raptor Lake launch, as well as the general health of the PC environment (which has clearly been waning in recent months)," Seymore said.
Intel Planning New Desktop Processors This Fall
Analysts expect Intel to debut its next desktop processors in October.
Seymore rates AMD stock as hold with a price target of 95.
Rosenblatt Securities analyst Hans Mosemann reiterated his buy rating on AMD stock after the product launch.
"AMD continues to execute flawlessly and we expect share gains to continue," he said in his note to clients.
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