New Radeon 5700 Graphics Cards Are Beating Nvidia and so Is AMD Stock

The early reviews are in, and they’re good news for AMD

Advanced Micro Devices (NASDAQ:AMD) launched its new Ryzen 3000 series processors and Navi-based Radeon 5700 series graphics cards this week. Both new releases are critical, and fortunately for both the company and those owning AMD stock, early reviews are glowing.

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With the first hands-on review of the Ryzen 3000 processors and Radeon 5700 graphics cards landing on Sunday, Advanced Micro Devices stock started the week off with a 1.71% gain.

Price Cuts and Drama

There was a little drama prior to the official release of the new AMD silicon. The company announced a price cut of $50 for its new graphics cards just two days before the launch. That was in response to rival Nvidia (NASDAQ:NVDA), which has been trying to spoil the launch with the announcement of GeForce RTX Super cards.

While analysts often see pre-release price cuts as troubling, in this case it seems to have been interpreted as a sign that Advanced Micro Devices is going to be aggressive in taking on Nvidia. Instead of taking a hit on the price cut news, AMD stock gained 64 cents on Friday. 

On Sunday, AMD put out a press release announcing the launch of its new graphics cards and processors, calling the combination the “Ultimate PC Gaming Platform.” It also announced buyers of the new graphics cards will get a free 3-month Xbox Game pass with access to over 100 PC games.

That wording may have confused some casual observers. After months of headlines about new subscription gaming services from the likes of Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google and Apple (NASDAQ:AAPL), “Ultimate PC Gaming Platform” almost sounded like AMD was announcing a new service of its own. That was likely intentional. However, the company was referring to the combination of the new Radeon 5700 graphics cards and Ryzen 3000 processors as offering a new best-in-class PC gaming experience. 

Positive Reviews Help AMD Stock Price to Pop

The key to how well Advanced Micro Devices stock is going to perform for the rest of this year is reviews. How well do the new products compare against market leaders Nvidia and Intel (NASDAQ:INTC)?

The early reviews went live on Sunday once embargo was lifted, and the news was just what AMD investors have been hoping to hear. Reviews of the Ryzen 3000 processors have been positive, with many noting that for the first time in more than a decade AMD is no longer trying to catch Intel in the PC space, it’s now on an equal footing—or better.

The reviews of the Radeon 5700 graphics cards are even more glowing. Tom’s Hardware pitted the AMD Radeon 5700XT against Nvidia’s new GeForce RTX 2060 Super and found the new Radeon achieved frame rates nearly 10% higher than the competition. 

The review notes, “The Radeon RX 5700s serve up almost universally better performance than competing GeForce RTX 2060s at the same prices.”

The positive reviews for the new CPUs and graphics cards that hit on Sunday helped AMD stock to pop on Monday, with a 1.71% gain on the day. 

AMD Stock Outperforming Rivals

The performance of AMD’s new lineup against its two arch rivals reflects their market performance so far in 2019. AMD stock is up 84.5% so far this year. NVDA is also up, but more modestly at 17.5%, while INTC has eked out 1.8% growth. 

All of these stocks have been negatively affected to some degree by the trade war with China and the threat of increased tariffs. But where Intel and Nvidia are focused on trying to hold their own against a surging and aggressive rival, Advanced Micro Devices is winning reviews, winning headlines and positioned to be winning new customers. And that should keep the AMD stock growth story going in 2019.

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/07/new-radeon-5700-graphics-cards-are-beating-nvidia-and-so-is-amd-stock/.

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