When Intel (INTC) first admitted that its top-end desktop processors had a flaw, Advanced Micro Devices (AMD) had a chance to take its market share.
AMD’s CPU refresh announced in the last week will fail to achieve that. The 9000 series chips saw a performance boost in a Linux operating environment. It increased minimally and decreased in various cases in the more important Microsoft (MSFT) Windows environment.
The results may not mean much for investors. AMD, like Nvidia (NVDA), is capitalizing on the strong demand for AI servers. It may afford to neglect the PC enthusiast market. It may offer underperforming chips at a premium price. This would maximize profitability.
Strategically, AMD may wait for Intel to respond to its product refresh. If Intel releases a better product at a competitive price, AMD will cut prices for the 9000 series chips. It also has the last generation chips to rely on to gain market share.
AMD fans will also wait for the company to launch x3d versions of the chip. The 7900x3d and 5800x3d predecessors offer better value without sacrificing performance. Once it releases the 9000 series x3d, AMD stock may renew its uptrend. Until then, the stock may trade in a range of $115 - $160.
