Chris Lau, Kapitall: AMD has just released a new line of graphics cards, but will investors be swayed?
Advanced Micro Devices (AMD) just released graphics cards that would refresh its lineup of highly profitable products for the PC market. These cards support games at ultra-high definition resolutions, and for many reasons should be welcome news for shareholders if consumers catch on.
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AMD dropped overall; from around $4 to $3.34 after reporting weak sales in the PC market. But after the product release, shares rebounded in recent sessions.The R9 290X graphics processor costs $549, and should be considered fairly priced for game enthusiasts when compared to initial prices of other high-end chips that have come out in previous years. This is a significant release for AMD, because it is the fastest video card AMD ever produced that is single-GPU. However, it won’t be long until rival NVIDIA (NVDA) reveals its response to AMD with the GTX 780 Ti. Early reports suggest that this NVIDIA card will be faster, but will not be competitively priced compared to AMD’s card. With these new products coming to the market, investors will want to know if AMD is still an appealing investment among chip suppliers. Click on the interactive chart to see data over time. Price war for graphics cards To keep prices competitive with AMD products, NVIDIA reduced the price of its GTX 660 and GTX 650 Ti to $179 and $129, respectively. The GTX 700-series are still $249 and above. By comparison, AMD’s R7 250 start at around $100, while the new R9 280X is $300.