AMD's New Radeon Pro GPUs to Boost MacBook Pro Performance

Advanced Micro Devices, Inc. AMD recently announced the launch of the new AMD Radeon Pro 5600M mobile GPU for Apple's AAPL 16-inch MacBook Pro laptops.

The GPU uses the 7-nanometer process technology (nm) and the AMD-RDNA architecture. It supports a variety of complex workloads such as video editing, color correction, application development and game creation to improve the user experience.

In addition, the Radeon Pro 5600M has 40 processing units and 8 GB high-speed HBM2 (High Bandwidth Memory) and 5.3 TFLOPS (FP32) with floating-point performance with simple accuracy.

These robust features are expected to drive adoption of the new MacBook Pro laptops, which is likely to strengthen AMD's reputation as a brand and investor optimism about the company's stocks.

AMD stocks in particular achieved a return of 19.2% this year, while the industry rose by 1.4%.
Advanced Micro Devices, Inc. price and consensus
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AMD Mobile GPUs promise solid momentum

AMD's growing portfolio of mobile graphics cards is a good sign that the company has robust traction.

The company's GPUs in particular are very popular with the leading laptop manufacturers in the industry, such as Dell DELL and Apple.

The recently launched Dell G5 15 SE features the Radeon RX 5600M GPU and a Ryzen 400 H mobile processor, which along with AMD SmartShift technology dynamically shift performance between CPU and GPU to improve performance.

In addition, the company's Radeon Pro 5300M and 5500M mobile GPUs are already included in Apple's entry-level MacBook Pro 16 series. In addition, the company's MacBook Pro 2019 can now be updated with Radeon Pro W5700X GPUs.

The growing punch of the Radeon Mobile GPUs is a tailwind for AMD. It is expected to increase the company's return on sales in the coming days. In addition, this dynamic is likely to continue, which is due to the increasing demand for laptops thanks to COVID-19-induced work-from-home and e-learning trends.

Strong competition should dampen growth

Although AMD's strengthening of the Radeon Mobile portfolio is promising, NVIDIA NVDA's intense competition in the GPU market is cause for concern.

Although AMD's discrete GPU market share rose from 22.7% in the first quarter of 2020 to 31% in the first quarter of 2020, NVIDIA still controls a large part of the market with 69% market share.

NVIDIA recently announced that the GeForce RTX 2080 Super and RTX 2070 Super graphics cards, which were released for desktops in 2019, will now be available for laptops. In addition, the company's existing GPUs like the RTX 2060 have had solid traction with laptop OEMs like ASUS and Lenovo. Significantly, Lenovo Legion Y740 and Asus ROG Zephyrus S use GX701 RTX 2060 GPUs.

In addition, the growing uncertainty in the market due to the coronavirus pandemic could be an obstacle for AMD, which currently ranks fourth (sell). Rising costs for product development should also keep margins under pressure. The full list of today's Zacks # 1 Rank (Strong Buy) stocks can be found here.

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