AMD Stock Falls Despite Unveiling of Ryzen Pro 8000 Series

On Wednesday, Advanced Micro Devices (AMD) shares tumbled as fears of losses in China eclipsed the introduction of the Ryzen Pro 8000 Series.

The California-based semiconductor company’s stock shed 5.70% to $154.14 per share on April 17 but recovered by 0.21% after-hours. Nevertheless, industry experts predict a 1.33% rebound to $156.19 apiece in the coming market session.

Ryzen Pro 8000 models are an upgrade to the Ryzen 8000G series, the first NPU-equipped AMD chips released in January. A neural processing unit (NPU) specializes in executing complex mathematical computations integral to large language model (LLM) systems.

Hence, the Pro 8000 for desktops will challenge the Intel Core Ultra for dominance in the emerging AI PC market. Meanwhile, the Pro 8040 is built for next-generation smartphones utilizing LLM systems to offer generative AI (GenAI) features.

According to benchmark tests, the new Pro 8000 processors can reach 39 TOPS on desktop and 16 TOPS on mobile. These specs surpass those of Intel’s 14th-generation AI chips that can offer up to 34 TOPS on desktop and 11 TOPS on mobile.

Furthermore, the Pro 8000 models use the new TSMC 4nm node, which is more efficient than the 5nm mode used by Ryzen 7000 processors. They can accelerate various tasks, including GenAI email summaries and responses, AI voice assistance, and image and video enhancements.

Ryzen Pro 8000 Cannot Offset AMD Losses in China

Tech experts anticipate the AMD Ryzen Pro 8000 expanding the chipmaker’s share of the processor market. Unfortunately, the gain will be far from enough to compensate for the upcoming drastic decline in sales in China.

This month, Beijing intensified its push for semiconductor self-reliance, ordering state-owned companies to eliminate foreign chips by 2027. As a result, Western chipmakers saw their stock prices plummet, including a 14.60% month-to-date decline for AMD.

In 2023, AMD generated 15.00% of its total annual revenue from China, narrowing from 22.00% in 2022. Analysts say the additional revenue from Ryzen Pro 8000 sales is incomparable to the losses from shrinking Chinese sales.

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