AMD launched next-generation Radeon graphics chips
In the last part of this seres, we discussed that weaker-than-expected PC demand led AMD to expect an 8% sequential decline in 2Q15. Apart from reducing its reliance on the PC market, AMD has cited gaming as one of the key areas that will be a part of its multi-year strategy.
To further enhance its presence in the PC gaming space, AMD launched next-generation Radeon graphics chips, including the Radeon R9 Fury series, the Radeon R9 300 series, and the Radeon R7 300 series. These chips were unveiled at the Electronic Entertainment Expo (or E3) held on June 17, 2015. Sony’s PlayStation 4 (SNE) and Microsoft’s Xbox One (MSFT) gaming consoles already employ AMD’s custom-designed Jaguar chips.
Salient features of Radeon graphics chips that make them ideal for the PC gaming space
These Radeon graphics cards come with high resolution virtual reality (or VR) capabilities and 4K gaming features. They also support new application programming interface (or API) like Microsoft DirectX 12. DirectX 12 is the latest generation of Microsoft’s API that has found its way to PCs (personal computers), handhelds, and Xbox One consoles. DirectX12 is expected to offer a huge improvement over its predecessors, as it exposes low-level hardware functionality through an industry-standard API to give developers more control and efficiency.
To find out more detail about Direct X12, please read Microsoft announces DirectX 12 for Windows 10.
Rob Csongor, vice president of investor relations for Nvidia (NVDA), stated that PC gaming represents approximately 40% of the global gaming market. This market is higher than phones, consoles, tablets, or any other single gaming segment. Through the Radeon Fury series, it appears that AMD is set to target the high-end gaming segment, where gamers are increasingly looking for 4K games and virtual reality titles. Its peer Nvidia also launched the GTX 980.
If you’re bullish on Microsoft’s stock, you could invest in the Technology Select Sector SPDR Fund (XLK), which invests 9.61% of its holdings in Microsoft.