Shares of Advanced Micro Devices (AMD) rose sharply on Tuesday as the new products came out convincing investors and analysts that the chip maker was considering winning the market. The stock rose 9.7% to $ 28.99 on Tuesday.
AMD has launched its Ryzen PC processors and a new graphics processor in its Computex lecture by CEO Lisa Su on Sunday. With the launch of the new chips, made with Taiwan’s 7-nanometer semiconductor processor, AMD plans to compete with similar Intel and Nvidia products.
Shares of Intel fell 1.86% to $ 43.74 on Tuesday, while Nvidia’s shares fell 0.32% to $ 144.65.
Stifel analyst Kevin Cassidy echoed the tone of the market, saying the chips were a threat to AMD’s competition.
“This announcement marks the first time that AMD has used Intel’s process and performance technology in its 50 years of existence,” said Cassidy. We expect AMD to accelerate the market share gains from its higher-performance, lower-power, lower-cost and easier-to-upgrade PCs.”
He added that the market share gains will be higher than the average ASP business and the higher gross margin, according to our estimates. Stifel will continue to recommend AMD’s actions during this new product development cycle.
Cassidy maintained its price target of $34, which represents a 17% increase over the current level of stock. Has a purchase order in stock.
Wells Fargo said it downgraded Intel’s performance in early April in the market, partly convinced that investor sentiment could be softened by the greater visibility of Intel’s momentum of momentum.
AMD is also expected to roll out its Rome chip in mid-2019, which Su says can deliver considerable power to the devices it delivers.