Julie Lamb

About the Author Julie Lamb

Julie graduated with a Bachelor of Arts in English with a focus on creative writing from the University of Louisville.

Advanced Micro Devices, Inc. (AMD): Ryzen – So Far Not So Good


Last week’s launch of Advanced Micro Devices, Inc. (NASDAQ:AMD) new-and-improved Zen products were supposed to be a smart right-hand serve in a battle of the chip giants. Yet, Ryzen chips might not stand to flourish as well as foretold against Intel Corporation (NASDAQ:INTC), whose chips are outperforming AMD on gaming and resolution.

For those who had counted Intel out, banking on AMD’s resurgence, it is worthy of note that Intel is sharpening its claws and has already begun to reign in prices on its Core i5 as well as i7 processors. In a mirror-mirror-on-the-wall query of whose prices are fairest of all, Intel is clearly not going down without a fight for its high-end core CPUs.

AMD is entering into the ring CPU prices circling $329 to $499, which compared to Intel’s steeper range of $1,809 to $1,109 certainly are appealingly lighter on the wallet. Yet, if reviews continue to be disappointed in Ryzen’s gaming performance and Intel carries forward its response in cutting costs, the chip demographic is going to pay attention. It will be a matter of if AMD can up its gaming factor while still maintaining its attractive valuation as a competitive edge over INTC.

Pricing pressure still seems to be in AMD’s favor. Yet, it certainly does not shine on AMD that the top technology review website Ars Technica has come out with criticisms of the new Ryzen line trailing after Intel in regards to gaming, despite the strengths the 1800x may boast. The strengths for Ryzen exist in terms of productivity, video encoding, and storage. But the gamers will likely swing for the more expensive Intel CPUs, at least during this stage of AMD’s evolution.

Positively, Intel is no longer ruling alone in the high-performance CPU sector, with AMD’s fair price a welcome swerving swing against the domineering Intel battleship; even if in terms of processing speed as far as pure instructions per clock (IPC) goes, Ryzen is not the Olympic champion of speed. Though gaming is not up to par for such high expectations, for video and image editors, Ryzen is a breath of fresh air with razor-sharp performance power. Mainly the gamers are the ones left discouraged.

This is AMD’s first round of new Ryzens, with more on the way. If the chip maker wants to truly tango with Intel and emerge as victor, the next line of Ryznes will have to impress on not just budget and power, but enhanced gaming dexterity.

TipRanks analytics show AMD as a Buy. Based on 22 analysts polled by TipRanks in the last 3 months, 10 rate a Buy on AMD stock, 10 maintain a Hold, while 2 issue a Sell on the stock. The 12-month average price target stands at $10.92, marking a 17% downside from where the shares last closed.

 

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts