The CES this year is proving to be a strong attraction for tech companies of all sizes with around 3000 companies signed up for the show. CES had seen a significant dip in attendance last year due to the pandemic while 2021 was lackluster as it was a virtual event.
Let us look at the major highlights of the CES so far this year.
AMD Showcases Processors with AI Capabilities
AMD (AMD) has announced updates to its Ryzen processor lineup. This processor will now have integrated artificial intelligence (AI) capabilities. AMD expects that its new Ryzen processors with AI capabilities are likely to be faster by 20% than Apple’s (AAPL) M2 processors while Intel (INTC) has yet to offer AI capabilities in its x86 range of processors.
Shares of AMD have more than halved in value in the past year as the chip company has been hit by a sharp drop in demand for personal computers (PCs).
However, analysts remain cautiously optimistic about AMD stock with a Moderate Buy consensus rating based on 20 Buys and seven Holds.
Roku to Sell and Design TV Sets
Roku (ROKU) announced at the CES that it will now design and build its own TV sets and sell them. The streaming giant currently offers its digital media players on Roku-branded televisions manufactured by third parties including TCL, Hisense, and Philips.
This move means that Roku will not be relying on third parties for TV sets but will be controlling all the aspects of television production.
The company stated that it will offer 11 television models ranging in sizes from 24 inches to 75 inches while prices will vary from $119 to $999.
Roku’s move comes amid declining digital advertising sales for the company as a recessionary environment tightens ad budgets. For Q4, Roku now expects to generate revenues of $800 million versus the consensus estimate of $899 million.
The company’s management had stated on its Q3 earnings call that player revenue and platform revenue is likely to be affected by lower consumer spending and advertising budgets during the holiday quarter.
ROKU stock has not fared well in the past year, with the stock down by more than 75%.
Qualcomm Unveils New Chip at CES
Qualcomm Technologies (QCOM) unveiled a new System-on-Chip (SoC) at the CES which would provide support to digital cockpit and advanced driver assistance systems (ADAS).
QCOM expects its automotive business segment to generate revenues at a consistence pace this year and had stated at its fiscal Q4 earnings call that its “design win pipeline across connectivity, digital cockpit and ADAS is now greater than $30 billion.”
The stock has declined by around 39% in the past year.
