AMD share price: what's the outlook after new chip announcement?
AMD stock could rise further after revealing a new chip and Samsung partnership.
AMD share price is rising after the chipmaker announced the creation of a new processor. The news is the first major announcement from AMD since its positive Q1 earnings report.
AMD share price jumps after revealing new chip
As part of AMD’s 50th anniversary, the corporation announced a third-generation Ryzen central processing unit (CPU) will be released July 7. The Ryzen 3000 processors promise to offer customers better memory support and faster calculations.
How will AMD shares perform after Samsung partnership?
In addition to the new chip, the corporation revealed that it will licence its Radeon graphics cards to Samsung for use in its devices. Chief executive officer (CEO), Lisa Su, spoke about the alliance with Samsung.
‘Adoption of our Radeon graphics technologies across the PC [personal computer], game console, cloud and HPC [high-performance computing] markets has grown significantly and we are thrilled to now partner with industry leader Samsung to accelerate graphics innovation in the mobile market,’ said Su.
‘This strategic partnership will extend the reach of our high-performance Radeon graphics into the mobile market, significantly expanding the Radeon user base and development ecosystem,’ added Su.
The alliance between AMD and Samsung could help AMD gain ground in its rivalry with Intel. Financial analyst, Kevin Cassidy, believes that AMD’s new chip could give the corporation an edge over Intel and rated AMD stock a buy.
‘We [financial analysts] expect AMD to accelerate its PC market share gains due to higher performance, lower power usage, lower cost and ease of upgrade,’ said Cassidy.
AMD has hopeful 2019 outlook
With new products and partnerships, Su spoke optimistically about AMD’s full-year outlook. AMD has a full-year guidance of high-single-digit percentage growth.
‘2019 is off to an incredible start for AMD as we celebrate 50 years of innovation by delivering leadership products to push the limits of what is possible with computing and graphics technology,’ said Su.
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