Expectations with AMD’s 7 nm Zen 2 architecture
This year is one of transition for Advanced Micro Devices (AMD) as it launches a complete suite of its next-generation Ryzen PC and EPYC server CPUs (central processing unit) and Navi consumer GPUs (graphics processing unit) built on TSMC’s 7 nm (nanometer) node. AMD’s Ryzen portfolio comprises the Ryzen 7, 3, and 5 series for desktops, the Ryzen Threadripper for high-end desktops, the Ryzen Mobile 7, 3, and 5 for laptops, and the Ryzen Pro for commercial laptops and desktops.
AMD is set to launch its third-generation Ryzen 3000 series in mid-2019 and early 2020. AMD’s investor presentation, which it updated in May 2019, lists the Ryzen products it will launch in 2019. The list includes the second-generation Ryzen Mobile APU (application processing unit), the Athlon Mobile and Mobile Pro APUs, and the third-generation Ryzen desktop CPU.
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Why AMD excluded the Ryzen Threadripper
The third-generation Ryzen series is based on the company’s 7 nm Zen 2 architecture. The Inquirer reported speculation that AMD may not launch its third-generation Threadripper in 2019 because the Zen 2 architecture may not yet be ready to deliver a high-end performance. But AMD is building an EPYC server CPU dubbed “Rome” on its Zen 2 architecture, and Threadripper is just one notch below EPYC, so this speculation is likely false.
The most probable reason could be a limited supply of 7 nm processors at TSMC, as the foundry will build Apple’s A-series processors in addition to AMD’s other 7 nm CPUs and GPUs in the third quarter. AMD could consider launching the Threadripper next year on the 7 nm+ node.
Intel accelerates its node transition
While AMD is rigorously implementing its product road map, Intel is accelerating its efforts to launch its first 10 nm mobile CPUs later in 2019 and its 10 nm server CPUs in early 2020. Intel is looking to compensate for the 10 nm delays and gain back its technology lead. At its 2019 Investor Meeting, Intel stated that it would launch its 7 nm products in 2021. Intel’s 7 nm node will compete with TSMC’s 5 nm node.
Intel’s acceleration of the manufacturing of its nodes will likely negatively affect its gross margin from 2019 to 2021 but could help it gain back its lead in the market.
In the meantime, AMD will benefit from its technology advantage in the PC and server CPU markets.
Disney's Studio Entertainment revenue fell 15% YoY (year-over-year) to $2.1 billion in the second quarter of fiscal 2019.
In the last month the CSI 300 is down 11.5%, much more than US indices.
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.