28-05-2025
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
