Although Advanced Micro Devices (NASDAQ:AMD) stock is on a downtrend since topping $34, the strong demand for its GPU may change that. The stock’s strong prospects from Zen and EPYC will keep the stock on an uptrend. What it needs is strong GPU sales, led by the 5700/5700 XT cards.
On Oct. 7, AMD unveiled an RX 5500 GPU. The card will support high-performance gaming on 1080, thanks to RDNA gaming architecture. HP and Lenovo will offer this GPU on its desktop gaming PC. HP, which is facing a slump in computer sales, needs a refreshed solution from AMD to differentiate itself from the competition.
The RX 5700 series is showing strong data points that may drive Q3 GPU revenues higher. Its AIB (add in-board partner) reported a 103% increase in sales. AMD reports results at the end of this month, such strong numbers could mean management raises its outlook for the next quarter.
AMD introduced the 5700 series card earlier this summer. Nvidia’s (NASDAQ:NVDA) equivalent offering is the RTX 2070. Both have the same number of stream processors but AMD has 3.3 billion fewer transistors. In a review from PC Mag, editors chose both the RX 5700 XT and Nvidia RTX 2070 super as their editors’ choice. This is an achievement for AMD because the company typically falls behind Nvidia, ceding market share in the process.
AMD reports quarterly earnings on Oct. 23.
