Advanced Micro Devices (AMD) stock was down on Tuesday alongside new rumors concerning the semiconductor company’s Zen 7 processors. These rumors claim that AMD’s next generation of CPUs will use the company’s current AM5 socket platform. This means many users will be able to upgrade to the company’s latest AMD processors without having to buy a new motherboard or RAM. This is contrary to prior rumors, which claimed the Zen 7 processors would herald a new AM6 socket.
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These latest AMD Zen 7 processor rumors come from YouTuber Moore’s Law is Dead, a prominent tech leaker. He claimed that recent documentation showed AMD intends to continue to use the AM5 platform, despite previous plans to switch to the AM6 socket. Moore’s Law is Dead compared this to development of AMD’s Zen 3 CPUs, which were originally slated to be AM5 processors, but were switched to AM4 late in development.
There are advantages and disadvantages to AMD sticking with the AM5 socket. A positive is that this will make its next generation of CPUs compatible with motherboards already owned by a large customer base. This could allow for strong sales, as users won’t have to pay as much to upgrade their PCs. However, it also means AMD will miss out on sales to customers who want to upgrade to the latest DDR6 RAM. It’s a tricky situation for AMD, but the company has likely already weighed these pros and cons for Zen 7.
AMD Stock Movement Today
AMD stock was down 3.19% on Tuesday, but remained up 41.15% year-to-date. The shares have also rallied 12.62% over the past 12 months. Some of the pressure AMD stock has seen today could be related to a U.S. investment in rival processor maker Intel (INTC). The U.S. government has considered a 10% stake in the company, which comes alongside SoftBank’s (SFTBY) purchase of $2 billion worth of INTC stock.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 25 Buy and 11 Hold ratings over the past three months. With that comes an average AMD stock price target of $183.97, representing a potential 7.79% upside for the shares.
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