Advanced Micro Devices (AMD 19.87, -0.32) CEO
Lisa Su delivered the keynote address at yesterday's Consumer Electronics Show
in Las Vegas.
In addition, the company reaffirmed its guidance for revenue growth in the mid-20% for fiscal year 2018 and issued a long-term outlook. The company expects double-digit growth in revenue due to momentum from new products. AMD expects that gross margin will be between 40.0% and 44.0% due to higher average selling prices and a more favorable product mix.
Keep in mind that for the past several years, AMD processors and video cards have been viewed as a "value" option aimed at users who are unwilling to pay premium prices commanded by top-end processors from Intel (INTC 47.80, -0.21) and top-end video cards from NVIDIA (NVDA 141.81, -0.77). During her appearance, Ms. Su presented an array of new products, including two items that could close the gap between AMD and its competition.
However the AMD CEO was very upbeat about the company's new line of products yesterday. Ms. Su claimed that Ryzen processors for desktops that are scheduled to launch in mid-2019 will "set the bar" for processors.
Ms. Su also took aim at NVIDIA when unveiling the new Radeon VII video card built on 7-nanometer process technology. AMD shared benchmark results, showing that this card, which will begin selling on February 7 for $699, slightly outperforms NVIDIA's GeForce RTX 2080 in select games.
Granted, AMD only shared results from three games, but if the new card lives up to expectations, it will challenge NVIDIA's position as the purveyor of top-end GPUs. Prices of NVIDIA's GeForce RTX 2080 range from $699 to $899 and the card has received mixed reviews since the launch in September.
Shares of AMD slipped to session lows after yesterday's presentation and they are indicated lower again today. The stock currently trades just above its 50-day moving average (19.65) with the 200-day moving average (18.82) looming just below.
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