Advanced Micro Devices, Inc. (NASDAQ:AMD) has been rising swiftly in the stock market, as it continues to make progress with its new Zen processors and recaptures market share, from NVIDIA Corporation (NASDAQ:NVDA). The stock has successfully improved by approximately $1 per share, in the last two weeks. The company most recently unveiled the first PCs hosting its 7th generation AMD Pro APUs, the Bristol Ridge PRO. The PCs have been manufactured by HP, under its EliteDesk 705 G3 series.
The company announced that the new APU is aimed at business users, who require increased graphics and computing power. In addition to this, the new units are also energy efficient, while also providing a secure platform for protecting user investments. Jim Anderson, the general manager of AMD’s computing and graphics business, claimed that the company had experienced a surge in the commercial client segment, during the last two years. He also claimed that HP and Lenovo had been expanding their use of AMD technology, in their business client portfolios, which was exciting for them.
However, the company has started to face headwinds with its graphics card business. Apple Inc. (NASDAQ:AAPL) earlier hinted at the possibility of switching to NVIDIA for its graphics card requirements. This is due to the widespread use of VR and AI technologies, both of which require high-end graphics. It should be noted here that AMD does supply GPUs that are capable of supporting VR applications. However, analysts believe that the switch is mainly due to a delay faced by Apple, in the launch of its new Mac Pro series. The delay was mainly due to power issues with AMD’s new Polaris GPUs.
In addition to this, Apple has also been exercising a new strategy to diversify its suppliers, instead of relying on just one. If the rumors are found to be true, it could mean a significant decline in the sale of AMD GPUs in the near future. Analysts at Wells Fargo & Co. believe that Advanced Micro Devices, Inc. (NASDAQ:AMD) has the potential to outperform, as do several other analysts. However, the majority of analysts remain neutral about the stock.
