AMD's 5nm Desktop Ryzen 7000 Launch Would Help It Gain Market Share, Analysts Say

Rosenblatt analyst Hans Mosesmann acknowledged Advanced Micro Devices, Inc AMD formally announced the 5nm-based Ryzen 7000 series at an event in Austin, TX, with 4 SKUs ranging from $299 to $699 (6, 8, 12, and 16 cores). 

He noted that pricing seems to be a bit lower than expected at the high-end. Ryzen 7000 series product availability for all SKUs in a global launch will be September 27, which suggests an aggressive volume launch.

Interestingly, AMD extracted more instructions per cycle (IPC) than the high single digits speculated by observers and increased generational top frequency by 800 MHz to 5.7 GHz. As a result, AMD claims mid-teens better performance in gaming vs. Intel and over 40% in multi-threaded or creator workloads vs. Intel Corp INTC.

Mosesmann noted that AMD showed benchmarks with a $299 low-end SKU besting Intel’s current high-end Alder Lake.

A key aspect of Ryzen 7000 is that it delivers 47% better performance per watt given that it uses the new Zen 4 core, which he sees as a barometer of this architecture’s goodness in upcoming mobile Ryzen 7000, of course, EPYC Genoa.

Mosesmann sees Intel’s upcoming Raptor Lake not changing the dynamic much. The new chiplet-based GPU RDNA3 for gaming is on track for launch in 2022.

Zen 5-based work is on track for various CPU launches in 2024. AMD continues to execute flawlessly, and he expects share gains to continue. Mosesmann reiterated a Buy and price target of $200.

Wells Fargo reiterated an Overweight and $130 price target. The analyst thinks the two most notable surprises were that AMD’s Ryzen 7000-series CPUs provided a 13% IPC uplift and implemented some price reductions. 

The analyst said it highlights AMD’s continued high-performance focused roadmap execution, including reiterating the schedule for Zen 4c Genoa EPYC CPUs and Zen 5. 

Price Action: AMD shares traded lower by 2.83% at $85.99 on the last check Tuesday.

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