AMD Stock: Chipmakers Tout Advances At CES 2022

Four top chipmakers on Tuesday introduced their latest products ahead of the CES 2022 tech conference. The news was a potential catalyst for AMD stock, Nvidia stock and others.

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Advanced Micro Devices (AMD) kicked off a day of announcements by companies at CES preshow events. CES officially runs Wednesday through Friday. CES 2022 is a hybrid event with an in-person show in Las Vegas as well as an online component.

AMD showed off its latest central processors and graphics processors for notebook PCs, with a special emphasis on gaming applications.

The Santa Clara, Calif.-based company debuted its Ryzen 6000 series mobile processors and new Radeon graphics processors.

AMD Stock Drops Despite CES News

AMD Chief Executive Lisa Su said the company’s new notebook processors will offer a big performance boost over its current-generation chips. The new chips are built with 6-nanometer process technology by Taiwan Semiconductor Manufacturing (TSM).

“The performance is just amazing,” Su said. “We are delivering an average of 1.3 (times) faster performance compared to the 5000 series across a wide range of compute-intensive benchmarks.”

AMD also previewed its next-generation processors, the Ryzen 7000 series. Those chips will use 5-nanometer process technology and are set for availability in the second half of 2022.

On the stock market today, AMD stock dropped 3.9% to close at 144.42, amid a rough day for tech stocks.

Nvidia Building The Metaverse

Graphics-chip maker Nvidia (NVDA) said its processors and software will play a key role in building the so-called “metaverse.”

On Tuesday, it announced the availability of Nvidia Omniverse software for creators who use its RTX graphics processors. It also revealed new Omniverse features for digital artists and designers.

“This is the future of 3D content creation and how virtual worlds will be built,” said Jeff Fisher, Nvidia senior vice president of consumer products.

Nvidia also introduced a lower-priced GeForce RTX graphics processor that it hopes will spur gamers to upgrade to ray-tracing technology. The GeForce RTX 3050 graphics processor will be available on Jan. 27 and start at $249.

In autonomous cars, Nvidia announced new users of its Nvidia Drive platform. It said electric-vehicle makers such as Volvo-backed Polestar and Chinese firms Nio (NIO), Xpeng (XPEV) and Li Auto (LI) have adopted its Drive Hyperion platform.

Also, TuSimple (TSP) announced that it will build its autonomous-trucking platform on a version of the Nvidia Drive platform called Orin.

Nvidia stock sank 2.8% to finish at 292.90 Tuesday.

Intel Stock Dips After CES Event

At its CES 2022 press conference, Intel (INTC) promoted the latest versions of its 12th generation Intel Core series processors for notebook and desktop PCs. Intel also disclosed that it has begun shipping its Intel Arc discrete graphics chips.

Intel’s Mobileye unit announced its new EyeQ Ultra system-on-a-chip for autonomous vehicles. Plus, Mobileye revealed expanded relationships with major automakers, including Ford (F) and Volkswagen (VWAGY).

But like AMD stock and Nvidia stock, Intel stock fell Tuesday. Intel ended the trading session down a fraction to 53.14.

Qualcomm Is ‘Ticket To Metaverse’

Finally, Qualcomm (QCOM) addressed its advancements in wireless chips and mobile processors during a live press event at CES 2022.

Qualcomm Chief Executive Cristiano Amon discussed how the company is expanding its market opportunity by moving beyond its core of chips for premium Android smartphones.

“We’re always going to be the company defining the pace of technology in mobile,” he said. “But there’s more to Qualcomm.”

Qualcomm sees its future growth in providing connected, smart and power-efficient chips for devices on the network edge. That includes automobiles, Arm-based PCs, and virtual reality and augmented reality headsets.

In the VR and AR space, Qualcomm already is providing its Snapdragon chips to more than 50 devices. On Tuesday, Qualcomm announced an expanded collaboration with Microsoft (MSFT) to develop lightweight AR glasses.

“We’re the ticket to the metaverse,” Amon proclaimed.

Qualcomm stock advanced 0.6% to close at 187.23.

AMD Stock, Nvidia Stock Tops In Group

AMD stock is tied for first place in IBD’s fabless semiconductor industry group. It is one of nine stocks in the group with a best-possible IBD Composite Rating of 99. Nvidia stock also has a Composite Rating of 99.

The fabless semiconductor group ranks first out of 197 industry groups that IBD tracks.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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