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Advanced Micro Devices (AMD) in a Bullish Continuation Breakout After Announcement upcoming 7nm Ryzen 3000 CPUs

As the general market contracted on Tuesday (5/28) trading, Advanced Micro Devices $AMD got a boost from Sunday's announcement regarding upcoming chips, specifically its 3rd Generation 7nm Ryzen 3000 CPUs. Here's a quick read from The Verge:

AMD is releasing its 7nm Ryzen 3000 CPUs on 7/7

AMD’s third generation of Ryzen CPUs are here, including the company’s first mainstream CPU to feature 12 cores, the Ryzen 9 3900X. The company is announcing five new processors as part of the lineup, all with a release date of July 7th. Their prices range from $199 to $499, and all of them are based on the company’s new 7nm Zen 2 architecture with support for the new PCIe 4.0 interface, which offers double the bandwidth of PCIe 3.0.

At the top of the lineup is the Ryzen 9 3900X. This 12 core processor has a base frequency of 3.8GHz, and is capable of boosting up to 4.6GHz. Next, the company has a pair of Ryzen 7 processors, the $399 3800X and $329 3700X. Both feature eight cores clocked at slightly different frequencies (visible in the table below) but the big difference is TDP, a basic indicator of a CPU’s power consumption. AnandTech notes that the 3700X has a TDP of just 65W compared to 105W for the 3800X, suggesting that it could be a very power-efficient processor for the amount of performance you’re getting. Finally, at the bottom of the lineup there are the Ryzen 5 3600X and 3600.

AMD RYZEN 3 CPU COMPARISON

ModelCores/ ThreadsBase FrequencyBoost FrequencyTDPPrice
Ryzen 9 3900X12C/24T3.8GHz4.6GHz105W$499
Ryzen 7 3800X8C/16T3.9GHz4.5GHz105W$399
Ryzen 7 3700X8C/16T3.6GHz4.4GHz65W$329
Ryzen 5 3600X6C/12T3.8GHz4.4GHz95W$249
Ryzen 5 36006C/12T3.6GHz4.2GHz65W$199

AMD has a few benchmarks to show off how it expects its new CPUs to perform. The company claims that its flagship 3900X will offer similar performance to Intel’s i9-9920X despite costing around half as much ($499 compared to $1,189). Meanwhile, AMD’s benchmarks suggest that the $329 3700X beats Intel’s $374 i7-9700K in both single and multi-threaded real-time rendering performance. We’ll have to wait to try out the new CPUs for ourselves to see how their performance stacks up in general usage.

All of the new CPUs are based on AMD’s new X570 chipset, which uses the same AM4 socket as AMD’s previous Ryzen CPUs. In theory, this means that if you already use a Ryzen processor then you should be able to swap one of the new CPUs into your system without having to upgrade your motherboard. However, in practice the power requirements of the new chips will mean that not every AM4 motherboard will support them. You’re not going to be faced with a lack of choice if you do need to upgrade your motherboard for the new chips however; AMD says that there will be 56 X570 motherboards available from its partners when the new CPUs launch.

Away from its CPUs, AMD also teased its next generation of graphics cards with a demonstration of the upcoming Radeon RX 5700. This 7nm-based GPU will run on AMD’s new RDNA microarchitecture, which finally replaces the existing GCN architecture that AMD first introduced back in 2011. AMD claims that, compared to its predecessor, RDNA offers 25 percent higher performance per clock and 50 percent higher performance per watt. It will also be one of the first GPUs to support the new PCIe 4.0 interface. The new GPU is expected to launch in July.


Let's take a look at the market reaction.

AMD Daily Chart

(click to enlarge)

Bullish Continuation:
- The daily chart shows a market where bulls are in charge.
- Price didn't hold above a recent support at $26.95, but it held above $26 and a rising trendline.
- Also, price held above the cluster of moving averages.
- The RSI held above 40, which reflects maintenance of the prevailing bullish momentum.
- The announcement gave a resilient name a boost. AMD is therefore in bullish continuation with at least the $33-$34 area in sight.
- At this point, the $28 area will become likely support for any pullback against this bullish reaction.
- Sliding below $27 on the other hand would suggest a failed bullish reaction and would likely translate to further downside below $26.
- But for now, it looks like the more likely scenario is that price holds above $28 for a run towards $33-$34 where price might then consolidate.


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