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AMD Stock Rose 8% on Ryzen 3000 Series Announcement

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AMD’s stock rockets on Ryzen 3000 Series announcement

Advanced Micro Devices (AMD) started 2019 with the announcement of its new Ryzen 3000 H and U Series CPUs for gaming laptops and ultrathin notebooks at CES 2019 (the Consumer Electronics Show) on January 6. The excitement around the new CPU range saw AMD’s stock rise 19.5% in two days, with almost an 8% increase today. In our article dated December 31, we stated that AMD will be the showstopper at CES 2019 and that its product announcements would significantly increase its stock price.

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Reality different than rumors

AMD’s stock rose even though the product announcements weren’t what had been anticipated. According to the rumor mill, the company was expected to announce its third-generation Ryzen CPUs and second-generation Vega GPUs for desktops. These chips were expected to be built on TSMC’s (TSM) 7nm (nanometer) node. AMD was also expected to offer a hint about its next-generation Navi GPU.

But the reality was different than rumors. AMD launched its second-generation Ryzen 3000 series CPUs for laptops on GlobalFoundries’ 12nm node. AMD claims that its Ryzen 3000 series CPUs are faster than Intel’s (INTC) eighth-generation Core processors. On the GPU front, AMD made no mention of Navi—nor did it announce a 7nm Vega GPU for PCs at CES 2019.

AMD’s other product announcements

While AMD didn’t unveil any new GPU, it introduced two new seventh-generation A-series processors—the A6-9220C and the A4-9120C—for Chromebooks. The company also unveiled an entry-level Athlon 300U chip.

AMD’s stock rose as the company expanded its mobile processor portfolio to target all levels of the laptop segment. AMD is likely to grow further in 2019 as it launches 7nm server processors and gains market share from Intel.

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