Advanced Micro Devices (AMD) stock fell on Monday after new leaks provided potential details about upcoming graphics processing units (GPUs) from the chip company. According to these leaks, AMD is developing new Radeon RDNA 5 discrete GPUs that will utilize Low-Power DDR memory instead of Graphics DDR.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
If true, these leaks show an interesting strategy from AMD. Low-Power DDR memory is cheaper than Graphics DDR, while also offering less bandwidth. However, this will be used in discrete GPUs that will come in laptops. There likely isn’t as much need for power in these devices, and AMD has also improved its memory efficiency over the years, allowing it to save money by using cheaper memory without too much of a negative effect on performance.
This also plays into a larger business strategy at AMD. The company has consistently appealed to budget-minded consumers, offering them products well below the prices from rivals Nvidia (NVDA) and Intel (INTC). This has helped its market share increase over the years and could help it in the long run, as consumer loyalty could result in repeat purchases of its products.
AMD Stock Movement Today
AMD stock was down 2.09% on Monday but remained up 35.94% year-to-date. The company’s shares have also increased 11.85% over the past 12 months. Some hurdles the company has faced this year include the ongoing trade war and President Donald Trump’s tariffs. The Trump administration has also taken a 10% stake in rival CPU and GPU maker Intel.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 24 Buy and 11 Hold ratings over the past three months. With that comes an average AMD stock price target of $183.45, representing a potential 11.74% upside for the shares.
Source link
:max_bytes(150000):strip_icc()/GettyImages-2219674112-6b3a7001ea874945ab13f4607d03ea9a.jpg "What Wall Street Analysts Think of Nvidia’s Stock Ahead of Earnings Wednesday")