Advanced Micro Devices, Inc (NASDAQ:AMD) launched its first Zen 5 desktop processors earlier this month, and now, it is set to release its flagship Ryzen 9 9950X CPU. However, early reviews suggest that this new processor may disappoint gamers and productivity enthusiasts, the Verge reports.

Hardware Unboxed's early tests show that the Ryzen 9 9950X offers only a 1% improvement in gaming performance over its predecessor.

Also Read: Apple, Intel, And AMD Lead Charge In AI-Capable PC Market Surge: Report

The Ryzen 9 9950X also needs to improve in productivity tasks. Hardware Unboxed found that the new chip shows minimal gains in benchmarks such as Cinebench and Blender.

AMD stock lost 17% in stock value in the last 30 days amid a broader semiconductor selloff.

AMD recently identified a critical vulnerability called "SinkClose," which affects several generations of EPYC, Ryzen, and Threadripper processors. This flaw can bypass security measures and remain unbeaten even after the operating system is fully reinstalled.

Interestingly, AMD stock is up 37% in the last 12 months. Investors can gain exposure to the stock through Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), and Vanguard S&P 500 ETF (NYSE:VOO).

AMD Stock Prediction For 2024

Advanced Micro Devices's revenue growth in FY23 was -3.9%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company's future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.1%, growing 2.2% from last year. The unemployment rate was most recently reported as 4.3%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Advanced Micro Devices stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against Advanced Micro Devices's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Advanced Micro Devices operates in the Information Technology sector. The stock has experienced average annual growth of 11.06% compared to the 10.43% average of its peer companies. This is below the broader sector movement of Advanced Micro Devices.

Price Actions: AMD shares were trading lower by 0.12% at $147.18 at the last check on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.