AMD Stock Surges On Investor Confidence In Ryzen 3000 Zen 2 CPUs

AMD Ryzen 3000
For the first time ever, AMD on Monday delivered the opening keynote at Computex 2019, and the company did not disappoint. As expected, AMD CEO Dr. Lisa Su unveiled a new generation of Ryzen 3000 series processors based on the company's Zen 2 CPU architecture, and talked about Navi. Following the event, AMD's stock shot up nearly 10 percent, indicating that investors are just as excited as AMD is about its immediate future.

AMD's stock price closed at $29.03 on Tuesday, a gain of 9.8 percent from where it opened. At one point during the day, it climbed as high as $29.67. At present, AMD's market capitalization is valued at $31.18 billion.

"This announcement represents the first time AMD has taken the desktop CPU lead process technology and performance lead from Intel in its 50-year history," said Stifel analyst Kevin Cassidy "Importantly for investors, we expect AMD to accelerate its PC market share gains due to higher performance, lower power usage, lower cost and ease of upgrade."

Cassidy is referring to AMD's 7-nanometer process node. Rival Intel is just now starting to ship its 10nm product lineup (Ice Lake) in volume, starting with mobile chips, but has struggled overall to make the transition from 14nm to 10nm. To be fair, Intel's 10nm node is roughly as advanced as AMD's 7nm node, but it's still notable that AMD just unveiled a line of mainstream desktop processors with up to 12 cores and 24 threads at 7nm.

In addition, AMD will be shipping its 7nm Navi GPU in the third quarter. AMD provided a few details at Computex, saying its upcoming Radeon RX 5000 series at the top end will be faster than NVIDIA's GeForce RTX 2070 by around 10 percent. We anticipate AMD providing more details along with an official launch during its Next Horizon Gaming event at E3 in June.

Circling back to CPUs, AMD will also be shipping new Epyc server processors based on Zen 2 next quarter. In short, it's entire portfolio is making the jump to 7nm, which brings with it faster speeds, improved IPC (instructions per clock) performance, and better power efficiency.