AMD Expands Portfolio With Zen 4 Powered Ryzen 7000 Chip Series

Advanced Micro Devices AMD is expanding its Ryzen processor line-up for gamers and content creators with the introduction of Ryzen 7000 Series desktop processors, powered by the new Zen 4 architecture.

The new Ryzen 7000 series offers four processors — Ryzen 5 7600X, Ryzen 7 7700X, Ryzen 9 7900X and Ryzen 9 7950 X — featuring combinations of 6 cores-12 threads, 8 cores-16 threads, 12 cores-24 threads and 16 cores-32 threads, respectively.

The new Ryzen 7000 series processors are expected to be available globally from Sep 27.

Built on a TSMC 5 nm process node, the new processors promise dominant performance and energy efficiency.

For instance, the premium Ryzen 9 7950 X (available at $699) enables single-core performance improvement of up to 29% compared with the previous version.

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The 7950 X processor offers up to 45% more computing power for content creators in POV-Ray, up to 15% faster gaming performance in select titles and up to 27% better performance-per-watt.

Moreover, the Ryzen 7950X processor is up to 47% more energy efficient than the closest competition.

Apart from the new processors, AMD unveiled the new Socket AM5 platform, which features four new chipsets, X670 Extreme, X670, B650E and B650. While X670 Extreme and X670 will be available in September, the other two will be available in October.

Expanding Portfolio to Drive AMD’s Prospects

AMD is benefiting from strong demand for Ryzen and EPYC processors. The latest Ryzen processors follow AMD’s June-end launch of Ryzen Embedded R-Series system-on-chips processors, which are specifically designed to address solutions for industrial and robotics systems, machine vision, IoT and thin-client equipment.  

AMD’s focus on constantly improving the performance of its Ryzen processors has been a game-changer against stiff competition from the likes of NVIDIA NVDA and Intel INTC.

AMD has underperformed Intel and the Zacks Computer & Technology sector year to date, while outperforming NVIDIA. AMD shares have lost 38.5% compared with Intel’s decline of 36%. NVIDIA has lost 46.3%, while the Zacks Computer & Technology sector has been down 26.3%.

Nevertheless, NVIDIA is giving AMD tough competition in the high-performance computing market. NVIDIA’s processors have been benefiting from the rapid proliferation of AI. NVIDIA is expanding its base in untapped markets like climate science, energy research, space exploration and digital biology.

Nvidia recently teamed up with Hewlett Packard Enterprise to bring AI software services to the cloud. NVIDIA AI enterprise is now available in Hewlett Packard Greenlake in select countries.

Intel, on the other hand, continues to be a leading name in the consumer PC market, thanks to its Alder Lake PC chips. The chip-giant has an innovative pipeline of products that includes Raptor Lake (13th gen) and Meteor Lake chips (built on Intel’s 4 nm manufacturing process).

However, declining PC demand doesn’t bode well for both Intel and AMD. Per the latest report from IDC, second-quarter 2022 PC sales were down 15.3% year over year to 71.3 million units, higher than the first quarter's decline of 5.1%.

AMD-partner Dell Technologies DELL also cautioned about a slowing PC market in its recently concluded fiscal second-quarter earnings call.

In late July, AMD and Dell launched a 17” AMD Advantage laptop, the Alienware m17 r5 Gaming Laptop. The new laptop is integrated with AMD Ryzen 6000 series processors, AMD Radeon RX 6000 series graphics, and new AMD Smart Technologies.

This high-end gaming laptop is expected to strengthen AMD's footprint in the consumer PC market.

Moreover, AMD’s focus on diversifying its product portfolio to cater to new and trending markets like cloud, gaming and data centers is expected to help it counter the declining PC demand.

Moreover, AMD’s acquisitions of Xilinx and Pensando will help it to expand in the augmented reality (AR) space and data center business. Xilinx’s acquisition expands AMD's technology and product portfolio and adds multiple high-margin long-term revenue streams across a new set of markets such as AI and AR.

This Zacks Rank #3 (Hold) company provided strong 2022 guidance for revenues backed by robust growth across all businesses. Higher server and client processor revenues are likely to lead to a sequential increase. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMD expects third-quarter 2022 revenues to be $6.7 billion (+/-$200 million), which indicates year-over-year growth of 55%. For 2022, AMD expects revenues to increase 60% year over year to $26.3 billion (+/-$300 million).

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