As indicated by the nearly 32% decline in the PHLX Semiconductor Sector Index, which tracks the semiconductor industry, stocks of these companies have been hit hard in the market this year. Included in this index are shares of Advanced Micro Devices, which have also fallen significantly. Notwithstanding, AMD held a conference Monday night to kick off a season full of announcements of next-generation products that aim to reign in video games and challenge Intel's strength.

At a time of declining demand for PCs, Advanced Micro Devices $AMD+1.2% late Monday night launched a new generation of processors that will be available this fall. In doing so, the company boasted the world's fastest gaming processor, which could draw some attention and sales.

"The Ryzen 7000 series is the world's absolute first desktop processor with 5 nanometers," AMD CEO Lisa Su told the audience in a presentation in Austin, Texas, which was also streamed on YouTube. "With the Zen 4 core, it's the world's fastest processor for gaming and content creation."

https://youtu.be/WcH_7xsYtUk

What new features will the Ryzen 7000 actually bring?

The processors will use the Zen 4 architecture and will be manufactured using an updated version of the 5nm process at TSMC, while the chiplets will use the 6nm process. The architecture itself is expected to deliver an 8-10% increase in IPC over Zen 3, which is not too little, but not too much either, however, along with the higher clock speeds, a more than 15% increase in performance in single-threaded applications is expected. Overall, however, the performance increase in multi-threaded applications is expected to exceed 35%, and AMD also promises 25% better efficiency (performance per watt).

AMD said the gaming cards will be available from September 27.

The top priced Ryzen 9 7950x will be listed at $699, while the Ryzen 9 7900x will be listed at $549, the Ryzen 7 7700x at $399 and the lowest priced Ryzen 5 7600x at $299.

The last time AMD announced a next-generation product with 7-nanometer chips was in 2020, just before the COVID-19 pandemic became official.

Where does the processor market stand and what does this mean for Intel?

In early August, AMD emerged as the most resilient of the major chipmakers during earnings season. With competitors like Intel Corp. $INTC+0.8% and Nvidia Corp. $NVDA+0.7% significantly lowered their billion-dollar sales estimates, AMD did quite well with an estimated sales range that fell only slightly below Wall Street's estimate of $6.84 billion.

AMD stock may have fallen a bit more this year compared to Intel, but the company's financial performance was much better. The stark difference in the two companies' financial performance suggests that AMD has the upper hand when competing with Intel in the CPU and GPU markets.

According to Mercury Research, in the second quarter AMD took market share from Intel in CPUs for servers and PCs. AMD's unit share of the lucrative server CPU market rose to 13.9% in the second quarter from 9.5% in the previous period.

AMD's share of notebook CPU sales was 24.8% in the June quarter, up from 20% a year earlier. Also, AMD's unit share of desktop PC processor sales was 20.6% in the second quarter, up from 17.1% in the same quarter a year earlier.

It is therefore wrong to assume that this trend will continue and AMD will continue to take market share from Intel. The company's newly announced Ryzen 7000 series of processors, which will provide gamers and content creators with top performance, will clearly help it to establish itself among PC manufacturers and video game fans.

AMD's technological edge and its lucrative prospects in the data center market, as well as other areas such as gaming consoles where Intel has no presence, give it the upper hand on the growth front. On the other hand, don't expect much from Intel in the next few years.

DISCLAIMER: All information provided here is for informational purposes only and is in no way an investment recommendation. Always do your own analysis.