Advanced Micro Devices, Inc (NASDAQ:AMD) made a significant claim regarding the future performance of Zen 5 CPUs pending a substantial update from Microsoft Corp (NASDAQ:MSFT).
The chip designer said Microsoft's upcoming Windows 11 version 24H2 update will boost performance for its new Zen 5 CPUs.
Reports indicated AMD resorted to discount offers on retail price to spur demand for its Ryzen 9000 series, which failed to impress the Street.
The AMD-specific branch prediction code optimized for Windows 11 version 24H2 will likely ship next month, the Verge cites AMD.
"Zen 5 will see the biggest boost, but this Windows update will improve performance for Zen 4 and Zen 3 as well," said AMD.
AMD predicted a 13% performance improvement for its 9950X CPU in Far Cry 6, running 24H2 instead of 23H2, and a 7% jump for Cyberpunk 2077.
Analysts, including Oppenheimer's Rick Schafer and Truist Securities' William Stein, evaluated AMD based on its plans to acquire AI server company ZT Systems for $4.9 billion. They held a mixed opinion about AMD's mission to compete with 800-pound gorilla Nvidia Corp (NASDAQ:NVDA) in the declining PC market.
Wedbush Securities' Matt Bryson and Oppenheimer's Rick Schafer hailed Nvidia as the critical AI play. This is backed by a robust quarterly print from customers, including Foxconn and Super Micro Computer, Inc. (NASDAQ:SMCI), which bear testimony to cloud service providers (CSPs) and enterprise AI demand.
AMD gained 44% in the last 12 months, compared to Nvidia, which has gained 171%.
Investors can gain exposure to AMD and Nvidia through Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), and SPDR S&P 500 (NYSE:SPY).
Price Action: AMD stock is up 0.77% at $152.86 premarket at last check on Friday.
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