AMD Takes Aim at Intel with New AI-Powered Processors
The tech world is abuzz with the latest developments from Advanced Micro Devices (AMD) at the Computex trade show in Taiwan. The company has unveiled its latest processors for AI-powered personal computers and workstations, aiming to take a bite out of Intel’s (INTC) market share. But despite the excitement, both AMD and Intel stocks took a hit on Wednesday.
A Stronger Partnership and New Processors
AMD has strengthened its partnership with Taiwan-based PC maker Asus, introducing the Asus Expert P Series Copilot+ PCs, a lineup of commercial PCs running AMD Ryzen processors. The top-of-the-line machine features an AMD Ryzen AI Pro 300 series processor, boasting more than 50 TOPS (trillions of operations per second) of neural processing unit (NPU) performance for faster and more efficient AI productivity.
The new processors are designed to support the next generation of Microsoft (MSFT) Copilot+ artificial intelligence experiences, making them a game-changer for enterprise users. AMD is also showcasing its Radeon RX 9060 XT graphics cards for next-gen gaming, as well as its latest Ryzen Threadripper processors and Radeon graphics cards for high-end workstations.
Market Reaction
Despite the impressive new offerings, AMD stock fell 1.3% to 112.06, while Intel stock closed down 2.7% at 20.69. This may be due to the fact that AMD’s market share gains have been slow to materialize, with the company still trailing behind Intel in terms of overall market share.
The Battle for Market Share
According to Mercury Research, AMD grabbed 24.4% of the market for x86 PC central processing units in the first quarter, up from 20.8% in the year-earlier period. Intel, on the other hand, took 75.6% of the CPU market, down from 79.2% in the same quarter last year.
Intel’s Challenges
Intel is facing its own set of challenges, including the sale of its network and edge businesses as part of a broader effort to divest non-core assets. The company has also announced a deal to sell 51% of its Altera business to private equity giant Silver Lake.
What’s Next?
As the battle for market share continues, investors will be keeping a close eye on AMD’s progress. With its new processors and strengthened partnership with Asus, the company is well-positioned to make a dent in Intel’s dominance. However, it remains to be seen whether AMD can sustain its momentum and ultimately overtake its rival.
Actionable Insights
For investors looking to get in on the action, AMD stock has an IBD Relative Strength Rating of 21 out of 99, indicating that it is in the bottom quartile for performance over the past 52 weeks. Intel stock, on the other hand, has an IBD RS Rating of 19.
Conclusion
The tech world is always evolving, and the competition between AMD and Intel is heating up. With its new processors and strengthened partnership with Asus, AMD is well-positioned to take on Intel and make a dent in its market share. As investors, it’s essential to stay informed and adapt to the changing landscape.