The graphics processing unit (GPU) used to be just second-fiddle to the central processing unit (CPU), a nice-to-have that made video games better. Then its usefulness expanded beyond making pretty pictures to powering data centers, mining cryptocurrency, and even serving as some of the underpinnings of artificial intelligence (AI). AMD (NASDAQ:AMD) has come a long way on the strength of GPUs, and its latest release gave it a fractional boost in Friday afternoon’s trading session.
Two new graphics cards—the Radeon RX 7700 and the Radeon RX 7800—are out to push the envelope in graphics processing once more. These are specifically geared toward more high-end gamers, and that much shows in the price. The RX 7700 sells for $449, and the 7800 retails for $499. However, both look to provide graphics well above HD, coming in at 1440p resolution. AMD took advantage of the season and brought its new graphics cards to Gamescom, which features a series of game trailers and demos ahead of the holiday shopping season, which starts in a little over a month.
Interestingly, the new cards will be available September 6, which is the same day that Microsoft’s (NASDAQ:MSFT) Bethesda will roll out “Starfield.” Bethesda’s first new IP in over 25 years, “Starfield,” represents a major new opportunity to advance Microsoft’s presence in gaming. With new graphics cards coming out, too, that should give “Starfield” a little extra punch, not to mention the games that will follow it. Analysts also recently noted a “huge bull flag on the weekly candle chart” for AMD, suggesting that it may be looking at a significant run-up in the future.
Analysts, meanwhile, are very much behind AMD. With 25 Buy ratings and seven Holds, AMD stock is considered a Strong Buy by analyst consensus. Further, with an average price target of $141.90 per share, AMD stock boasts 39.82% upside potential.
