Advanced Micro Devices, Inc. (NASDAQ:AMD) recently unveiled its new Radeon RX 590 graphics card. This launch is likely to provide AMD an edge against the likes of NVIDIA (NASDAQ:NVDA) and Intel (NASDAQ:INTC) .
This card is ideal for gamers who require superior graphic performance. Powered by the latest “Polaris” architecture, the graphics card will support AAA, eSports and Virtual Reality (VR) titles, giving it the desired speed for optimal graphics solutions required for notebooks and desktops. It has been designed to deliver more than 20% of computing performance, offering extreme gaming details with 12nm process technology.
Priced at $279, Radeon RX 590 supports AMD Radeon FreeSync technology offering an improved soundscape for gaming along with rich graphics. With these cards, AMD is foraying into the high-end graphics card market. Consequently, AMD’s revenues are poised to benefit significantly if the latest GPU can cater to the rising demand of the users.
AMD stock has gained 109.1% year to date, against the 9.6% decline of the industry it belongs to.
Gaming PC & GPU Demand to Boost AMD’s Growth
Per Gartner, PC shipments in the third quarter increased 0.1% year over year to 67.2 million units. We believe AMD is well poised to benefit from the strong demand of gaming PCs.
Notably, growth in the gaming hardware market is driving demand for graphics processors as well. Per Allied Market Research, the GPU market is anticipated to reach $157.1 billion by 2022 at a CAGR of 35.6% from 2016 to 2022.
Furthermore, increasing adoption of AI techniques and machine learning tools in industries like gaming, automotive and blockchain are primarily responsible for driving GPU demand. AMD is benefiting from this demand.
We believe that the launch of the new graphics card will help AMD increase its market share further, going forward.
Zacks Rank & Key Picks
AMD currently has a Zacks Rank #3 (Buy).
A better-ranked stocks in the broader technology sector is Castlight Health, inc. (NYSE:CSLT) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Castlight Health is projected to be 22.5%.
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Castlight Health, inc. (CSLT): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
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