Performance Boost with Windows Update
Advanced Micro Devices, Inc. (AMD) has made a noteworthy assertion regarding the anticipated performance enhancements of its Zen 5 CPUs, contingent upon a significant update from Microsoft Corp (MSFT). The chip manufacturer announced that the forthcoming Windows 11 version 24H2 update is expected to elevate the performance of its new Zen 5 CPUs. Reports suggest that AMD has adopted discount strategies on its retail prices to invigorate demand for the Ryzen 9000 series, which has not met market expectations.
According to the Verge, the AMD-specific branch prediction code, optimized for Windows 11 version 24H2, is slated for release next month. AMD stated, “Zen 5 will see the biggest boost, but this Windows update will improve performance for Zen 4 and Zen 3 as well.”
AMD anticipates a 13% performance increase for its 9950X CPU in
Market Analysis and Competitive Landscape
Analysts from Oppenheimer and Truist Securities have scrutinized AMD in light of its plans to acquire AI server company ZT Systems for $1.9 billion. Their perspectives on AMD’s strategy to compete with the formidable Nvidia Corp (NVDA) in the contracting PC market remain mixed.
Matt Bryson of Wedbush Securities and Rick Schafer from Oppenheimer have both recognized Nvidia as the premier player in the AI sector, bolstered by strong quarterly results from clients such as Foxconn and Super Micro Computer, Inc. (SMCI), which reflect the growing demand from cloud service providers (CSPs) and enterprise AI initiatives.
Over the past year, AMD’s stock has appreciated by 44%, whereas Nvidia has experienced a remarkable 171% increase.
For investors looking to gain exposure to both AMD and Nvidia, options include the Invesco QQQ Trust, Series 1 (QQQ), and the SPDR S&P 500 (SPY).
Price Action: As of the latest premarket check on Friday, AMD stock has risen by 0.77%, reaching $102.86.
