AMD Vega Latest News: Company Stocks Slumped Despite AMD Vega Launching; Device Might Possibly Not Make It With Xbox Scorpio
The AMD Vega was not able to help the company pull its shares up. In addition, it was reported that the highly anticipated GPUs and CPUs from AMD might not be able to make it to Microsoft's Project Scorpio.
Advanced Micro Devices or commonly known as AMD, a company famous for its technological innovations, is planning to release AMD Vega. This release is supposed to be alongside with its much-publicized Ryzen line of processors.
It has been obvious that the anticipation of the tech world for its release is already high. On the contrary, making it as the-talk-of -the town does not prevent the AMD's stock shares from dropping. Since last week, its value is 9% down. This present crisis of the company is blamed to a Wall Street analyst who grilled AMD's ability to compete with other semiconductor companies.
Despite the high confidence to CEO Lisa Su and her management to the company, AMD investors received a peculiar "sell" recommendation Toshiya Hari, an analyst from Goldman Sachs. In the recommendation, as reported by Fortune, he stated that the AMD's stocks could decrease to as much as 20% and given this figure, the cost of the shares would result to only $11. Due to this instigation from the analyst, many of the investors in AMD let go of their shares, notwithstanding the supposed success the AMD Vega and Ryzen would have.
It would be a major setback to the company since they are still in the struggle in regaining their stability in central processing unit and graphics processing unit sectors. Both their CPU and GPU lost their market shares to Intel and Nvidia, respectively. To gain back their lost, CEO Su is leading the company in rolling out some new products. The line of chips from AMD Vega is being anticipated to raise the company's value but the mere news about the upcoming release is not helpful to enhance the stocks.
Another unfortunate event for the company is that the next Xbox that would be released by Microsoft is said to use neither AMD Vega nor the Ryzen, says PCGamesn. Named as Project Scorpio, its GPU is revealed to have Polaris and not the two processors from AMD, according to its newly released specifications.
According to some tech gurus, even without AMD Vega or Ryzen, Microsoft had managed to reach the 4K capabilities on its latest Xbox. However, if Microsoft would allow either AMD Vegas or Ryzen to go inside the next Xbox, the investors of the company might gain their confidence again