Here’s Why Advanced Micro Devices, Inc. (AMD) Stock Climbed 4% Today

Advanced Micro Devices, Inc. (NASDAQ:AMD) is getting set to give chip rival Intel a serious run for its money. The rumor mill is buzzing today after a leak on Asian website Hardware Battle points to a fresh set of second-gen Ryzen computer processing units (CPUs) running at supersonic speeds. Allegedly, the benchmark sneak peek shows an eight-core Ryzen 2 chip with 16 threads racing up to a turbo clock speed of 4.35 GHz; the chip giant’s speediest CPU serve to the market to date.

In reaction, investors got a gulp of enthusiasm, sending shares on a 4% surge.

Considering the company’s Ryzen 7 1800X only hits 4.1 GHz and the desktop Threadripper CPUs spiral up to just 4.2 GHz, this would mark a key frequency stride forward for this semiconductor player.

If the word on the Street is true, Intel’s Core i series could be at a big competitive risk here, with only a month to find out just how powerful the next Ryzen chips from AMD will truly be. With new architecture Zen+, the company’s successor to the Zen in the newest Ryzen line, Intel shares could be feeling the heat this year.

Keep in mind, AMD’s 8-core Zen processors already boast a powerhouse multithreaded performance. Between revamped Zen architecture and bumped up clock speeds, AMD is gunning to be unstoppable; and Intel could be left behind in the dust of these rapid-fire, new-and-improved performing chips. Intel used to be the king of gaming. Yet, with AMD ready to unleash a base clock speed of 2.2 GHz leaping to 3.7 GHz and ramping up to lightning speed of 4.35 GHz, the chip making verse is about to see an arena of tight competition.

These new Ryzens also could be up to bat for improved gaming performance than the Ryzen 7 1800X of last year. After all, these chips will maximize Precision Boost 2 technology, showcasing impressive turbo algorithms, enhanced power efficiency, as well as higher responsiveness. Importantly, the original Ryzen CPU line was not as strong in gaming as Intel, and clearly the AMD team is taking note with April’s forthcoming launch.

AMD had already taken a hit at Intel with bargain prices for PC gaming chips: Ryzen 5 2400G at $169.99 and Ryzen 3 2200G at $99. The goal here was to rival Intel at low-end offers. Next up: AMD has its eye on juiced up performance, clearly.

Analyst Ratings

TipRanks points to Wall Street sentiment that is largely fixed on the sidelines- but tilted towards the bulls. Based on 13 analysts polled in the last 3 months, 6 rate a Buy on AMD stock, 4 maintain a Hold, while 3 are bearish on the stock’s market opportunity. The 12-month average price target stands at $15.35, marking 23% in upside potential.  

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