AMD Gains as Analysts Praise CES Product Reveals

Shares of Advanced Micro Devices rise as analysts praise the chipmaker's suite of new products unveiled at the Consumer Electronics Show.
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Shares of Advanced Micro Devices  (AMD) - Get Report gained on Tuesday as analysts praised the chipmaker's suite of new products unveiled at the annual flagship Consumer Electronics Show in Las Vegas.

AMD late on Monday unveiled what it calls the world’s highest performance desktop and ultrathin laptop processors. It also announced four new desktop and mobile GPUs, including AMD Radeon RX 5600 series, a processor that promises up to 20% faster gaming performance and 10% faster performance on certain kinds of e-sports games.

“From heart-pounding e-sports competitions to eye-popping AAA blockbusters, today’s games demand more performance, higher frame rates and lower latency than ever before,” said Scott Herkelman, corporate vice president and general manager. 

Specifically, AMD is touting its abilities to work with games played in 1080p, a higher resolution that offers more realistic movement and colors but also eats up more memory and power usage. 

“There are 90 million active users on Steam, and over 64% of gamers who participated in a recent Steam survey reported playing at 1080p," said Herkelman. "We’re committed to providing all 1080p gamers with the raw horsepower and incredible features that enable the absolute best gaming experiences with all settings maxed out."

Analysts responded positively to the announcements, saying they should help the company extend its recent momentum and market-share gains against Intel  (INTC) - Get Report.

The announcements “underscore AMD’s ability to deliver its roadmap of next-generation products,” analysts at Jefferies said in a note to clients, adding that AMD “is both out-executing and gaining share over” Intel.

Bank of America/Merrill Lynch, meantime, said in its own research note that it was “encouraged by AMD’s product announcements, particularly in notebook CPUs,” a product category that could support margin expansion.

Morgan Stanley also took a positive, albeit more conservative tact, noting that it will be important for AMD to show strong server results “to keep that momentum going, given the relatively high valuation.”

Shares of AMD were up 0.54% at $48.65 on Tuesday.