Will AMD Stock Benefit from the GPU Maker's Appeal to 1080p Gamers?
Advanced Micro Devices (AMD) understands that 1080p gamers make up a large majority of the market, and it wants to appeal to them with competitively priced graphics cards. That includes its 8GB RX 9060 XT priced at $299. However, an 8GB GPU being released in 2025 has resulted in some criticism from gamers, as increasing VRAM demands make 12GB and 16GB options preferable.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Frank Azor, AMD's Chief Architect of Gaming Solutions and Gaming Marketing, argued an 8GB card is plenty of power for the majority of gamers, who still play at 1080p. Steam data backs this up with roughly 55% of users playing at 1080p. He also points out many gamers primarily play esports titles, which don't require high-performance parts.
Gamers who want more VRAM have options. AMD will also sell a 16GB version of the RX 9060 XT priced at $349, just $50 more than the 8GB model. That's still within the realm of reasonable pricing for budget-minded gamers. Both variants will be released on June 5.
How Do AMD's GPUs Compare to Nvidia's?
AMD is offering similar performance to Nvidia's (NVDA) GTX 5060 Ti offerings with its new RX 9060 XT GPUs. The big difference is the price. While AMD's cards are priced at $299 and $349 for the 8GB and 16GB versions, Nvidia's GTX 5060 Ti 8GB starts at $379 and the 16GB model starts at $429.
AMD clearly wants to woo gamers with its cheaper prices for comparable performance. It also plans to have a large supply of cards ready, allowing consumers to purchase the GPUs for MSRP. That's something that has been hard to do with Nvidia cards as output has failed to keep pace with demand.
If AMD's plan to target 1080p gamers works, it could be a big win for Team Red and the company's stock.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts' consensus rating for AMD is Moderate Buy, based on 22 Buy and nine Hold ratings over the last three months. With that comes an average AMD stock price target of $126.55, representing a potential 14.72% upside for the shares.
See more AMD stock analyst ratings
Disclaimer & Disclosure Report an Issue
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBC
an hour ago
- CBC
History repeats itself, says widow whose husband and son died in Titan sub implosion
History repeats itself as unheeded warnings foreshadow the Titan's fatal implosion 9 hours ago Duration 1:48 Social Sharing On June 18, 2023, the Titan submersible disappeared during a dive to the iconic wreck of the Titanic. The world watched in shock as authorities mounted a laborious, four-day search-and-rescue operation that located debris on the sea floor, less than 500 metres from the bow of the Titanic. The submersible had imploded shortly after launch, killing all five on board. The Nature of Things documentary Implosion: The Titanic Sub Disaster, coming to CBC Gem on June 6, examines a series of warnings and red flags that were raised in the years and months leading up to the tragic implosion. With unprecedented access to the United States Coast Guard's Marine Board investigation and interviews with key witnesses and experts, the film details the systemic issues and design flaws that led to the Titan's ultimate failure. Who was OceanGate CEO Stockton Rush? In this clip, we meet Stockton Rush, the OceanGate CEO who died on the doomed expedition. He was an inventor with a grand vision to make deep-sea exploration more accessible. "His family legacy was really about the closest that you could get to royalty within the United States," says submersible pilot and designer Karl Stanley in the film. Two of his forefathers were signers of the Declaration of Independence, and his wife, Wendy, was the great-granddaughter of Isidor and Rosalie Ida Straus, the owners of Macy's department store who died when the Titanic sank in 1912. Rush was wealthy, with vast connections in the American business world, and deep-sea exploration was his life's passion. Was the Titan submersible doomed to fail? Rush had built the Titan submersible out of carbon-fibre, an unconventional material for deep-sea exploration that, in hindsight, doomed the vessel. The sub had already made 13 trips to the wreckage of the Titanic, some 3,800 metres below the surface, before its final trip. The 15-month investigation into the tragedy revealed that each trip to the depths weakened the hull. "Hardly anybody in the public is familiar with carbon-fibre," says OceanGate safety diver Tym Catterson in the film. "It's stable. All the way up until this magic point that it is not. When it finally pops, it will catastrophically fail." There were early signs that the Titan was unsafe; in 2020, a large crack formed during a dive and the hull had to be rebuilt entirely. In 2022, a l oud bang was heard as Titan was surfacing from the depths, suggesting that the carbon-fibre hull suffered structural damage. "In one of my emails, I tell [Rush] that the hull is yelling at him and he needs to listen," submersible expert Karl Stanley recalls. In spite of all this, Rush continued his missions, undeterred. "Why is arrogance more important than safety?" asks Christine Dawood, whose husband, Shahzada and 19-year-old son Suleman died on the dive. "The irony is not lost on me that the Titanic sunk for exactly the same reason. So history repeats itself." Watch Implosion: The Titanic Sub Disaster on CBC Gem and The Nature of Things YouTube channel on June 6, 2025. Airing on CBC TV Wednesday, June 18 at 8 p.m.
CTV News
an hour ago
- CTV News
CTV National News: Concerns among Canadian investors over Trump's 'big, beautiful bill'
An advisor says Canadian investors don't need to panic yet over the tax implications of U.S. President Trump's 'big, beautiful bill'. Adrian Ghobrial explains.
CTV News
an hour ago
- CTV News
Trump's tariff hike could be ‘catastrophic' for Hamilton, mayor warns
Hamilton Mayor Andrea Horwath speaks about the impact U.S. President Donald Trump's doubling of steel and aluminum tariffs will have on her city's economy.
