semiconductor designer Advanced Micro Devices (AMD -2.38%) Just announced the next generation of CPU chips. The Ryzen 7000 series is said to boost various performance metrics by double-digit ratios, compared to the current Ryzen 5000 line of desktop CPUs.
So the pace of fragmentation continues in the CPU market. AMD just introduced a promising product line, and it’s up Intel Corporation (INTC -1.05%) to come up with an answer. Will the AMD Ryzen 7000 lineup put Intel on the defensive, or does Chipzilla have a solid answer up its sleeve?
lets take alook.
New AMD Chips
The Ryzen 7000 series is set to hit store shelves on September 27, comfortably ahead of the holiday shopping season. Launch prices will range from $299 for the six-core Ryzen 5 7600X to $699 for the 16-core Ryzen 9 7950X. In addition, clock rates are about 30% higher compared to similar products from the Ryzen 5000 range.
According to AMD press material, the entry-level Ryzen 5 7600X outperforms Intel’s flagship gaming processor, the Core i9-12900K, in a few “select” gaming titles. Furthermore, in stress tests using ray tracing graphics software, the best Ryzen 7000 chip outperforms the same Intel’s crown jewel by 57% in content creation performance.
Of course, these raw benchmarks come with limited information about the test conditions and specific performance metrics under the AMD lens, but that’s only course equivalent. Independent reviewers will put the Ryzen 7000 series CPU through challenge testing in late September, giving us a fairer and less picky view of performance upgrades.
As the first wave of the new processor architecture, the new Ryzen CPUs are also ushering in a new motherboard platform called Socket AM5. This system supports more and faster memory, and is based on the next generation of PCI Express connectivity. High-end versions of the new platforms will be available at launch, followed by mainstream, watered-down alternatives in October.
work as usual
It’s nice to see progress in the CPU market, but this particular launch isn’t unusual. Each new generation of processors raises the bar in terms of high performance, better performance per watt of power used and cost efficiency. Intel’s upcoming Raptor Lake processors will almost certainly be wrapped up in similar claims, comparing this product line to the current Alder Lake platform and to AMD’s latest and greatest. The processor performance picture is complex enough that both Intel and AMD can pick up test results that make their latest products look good.
Furthermore, Intel Core chips come in a wide range of ultra-specific flavors, from low-power mobile chips with modest performance to power-hungry monsters. Intel’s suggested price range also extends a little further, starting at $97 for a low-end Core i3 12100F and ending with a higher-end Core i9 12900KS for $739. As such, users with very specific computing requirements are more likely to find exactly what they need in Intel’s sprawling suite of products.
The Raptor Lake chips are a relatively minor update, plugging into the same LGA 1700 sockets as the current generation of Intel chips. So, if you just need a faster processor, 13th Gen Intel Core chips can be instant replacements for 12th Gen Alder Lake processors. An Intel update is scheduled for the second half of 2022, likely in the next few weeks. Intel should keep these holiday shoppers happy, you know.
No warning, no surprises
And of course, everyone knew that AMD would introduce a new line of high-performance chips someday soon. Investors ignored this release, letting AMD and Intel shares drop about 2% on the day of the announcement.
I’m more interested in seeing how AMD’s manufacturing pipeline goes up for these new products. chip building partner Taiwan’s semiconductor industry (TSM 0.68%) It runs its production lines almost at full capacity, struggling to keep up with incoming order volumes. Taiwan Semi and Intel are expanding and modernizing their manufacturing lines as we speak, but this effort is leading to a shortage of chips used in their chipmaking machines. It’s a chicken or egg problem with no easy solutions. I don’t expect AMD or Intel to deliver game-changing production volumes, even if the new products are great.
So it’s just another turn of the wheel in the semiconductor industry. AMD and Intel investors should closely monitor manufacturing volumes compared to the technical details of the new chips.
Anders Billund holds positions at Intel Corporation. Motley Fool has positions at Advanced Micro Devices, Intel and Taiwan Semiconductor Manufacturing. Motley Fool recommends the following options: long calls in January 2023 worth $57.50 on Intel and $57.50 in January 2023 on Intel. Motley Fool has a disclosure policy.
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