Normally it’s a pretty big day when a chipmaker like AMD (NASDAQ:AMD) pulls back the curtain to show off some new innovations. Today, however, was a wholly different matter, as AMD stock slipped after unveiling new processors.
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First, AMD showed off its new slate of Ryzen PRO 7040 Series mobile processors. That not only gives “Zen 4” performance but also the addition of a Ryzen AI engine for at least some breeds of Windows 11-powered business-grade laptops. A good start, and it gets better; AMD also rolled out the Ryzen PRO 7000 series, which gives that same “Zen 4” performance to desktop users. Also, desktops get access to RDNA 2 integrated graphics, which should improve several applications. Not revealed just yet—but expected by several analysts—is the upcoming “AI Superchip,” which will likely prove a match for what Nvidia (NASDAQ:NVDA) has been rolling out lately.
AMD already has several buyers lined up for these more potent chips. Indeed, Meta Platforms (NASDAQ:META) is already working with AMD to get hands on the Bergamo processor, as Meta recently adopted it for use in its own systems. Getting Meta on its side will certainly prove helpful; AMD is eager to get some market share in the AI space, where Nvidia controls between 80% and 95% of the field, depending on which analysts you ask.
Overall, analysts are generally on AMD’s side. With 21 Buy ratings and eight Holds, AMD stock is considered a Moderate Buy. However, with an average price target of $112.96, AMD stock also comes with 9.11% downside risk.
