Advanced micro-devices (NASDAQ: AMD) made a comeback in the laptop market last year with its Ryzen 4000 Mobile series of processors. The chips are built on the company’s Zen 2 architecture and Taiwan Semiconductor7 nm manufacturing process, which delivers exceptional performance and competes effectively with chip giant products Intel (NASDAQ: INTC).
Once a significant number of laptops were available, AMD’s market share increased. According to Mercury Research, according to Tom’s Hardware, AMD’s chips were in 20.2% of the laptops sold in the third quarter of 2020, compared to 14.7% for the same period in 2019.
At the CES 2021 technology fair on Tuesday, AMD announced the next version of its Ryzen laptop processors on Tuesday. The Ryzen 5000 Mobile series uses the company’s latest Zen 3 architecture, the same architecture used for AMD’s most recent desktop chips. The new chips use the same 7 nm manufacturing process as their predecessors, so the performance jump is likely to be smaller this time around.
Image source: AMD.
Double-digit improvements
AMD’s Ryzen 5000 Mobile family contains 13 processors. Interestingly, the two lowest chips are built on AMD’s previous Zen 2 architecture, which is likely to keep costs low. The lowest Zen 3 processor is the 6-core, 12-wire Ryzen 5 5600U, while the highest processor is the 8-core, 16-wire Ryzen 9 5980HX.
Processors with the HX designation are aimed at gamers and creators. AMD claims that the Ryzen 9 5980HX processor offers up to 23% higher single-wire performance and up to 17% higher multi-wire performance than the Ryzen 9 4900H processor of the last generation.
In terms of performance, the H-Series is below the HX-Series, with the processors using less power and lower clock speeds. The HS Series reduces power consumption even more, and the U-Series is aimed at laptops where efficiency and battery life are just as important as raw performance.
AMD is making big promises for this U-series chips. The company claims that the Ryzen 5800U, an 8-core chip that should be found in some ultra-portable high-end options, offers 16% better single-wire performance and 14% better multi-wire performance than the previous Ryzen 7 4800U. Battery life should also be solid, with up to 17.5 hours of battery life for general use and up to 21 hours of movie viewing.
Devices coming soon
AMD expects the first Ryzen 5000 Mobile laptops to be available sometime in the first quarter, with more than 150 laptops expected to launch in 2021 with the new chips.
Unlike the computer market, where AMD can sell its chips to those who build their own computers, the laptop market requires AMD to convince original equipment manufacturers (OEMs) to design systems around their chips. While AMD’s products have outperformed Intel in terms of performance, Intel chips still account for about 80% of laptops sold. For consumers who do not follow the industry and know little about technology, buying an Intel-based laptop is the way of least resistance.
Intel has been processing some new laptops over the past few days. Intel’s Tiger Lake H series will not compete with the best of AMD. Instead, the processors will power devices aimed at delivering decent gaming performance, along with good battery life. More powerful Tiger Lake laptop processors from Intel are not yet available.
AMD should still gain market share this year, but how much it earns depends on the extent to which OEMs embrace its products. Intel has no problems selling laptops for chips amid the pandemic. The volume increased by 25% year-on-year in the third quarter. AMD will have to overcome Intel’s inertia in the laptop market, which will be easier said than done.
Market share gains do not necessarily mean a higher share price for AMD. Shares in AMD are historically expensive after a strong performance in 2020, with stock trading for more than 100 times earnings. While AMD is likely to do well this year, AMD’s share is still a story.