Tech

AMD Vega Fails To Boost Company Stocks; May Not Make It To Project Scorpio

By Grace Anilado , Apr 08, 2017 04:30 AM EDT
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The AMD Vega is one of the technology company's latest innovation. Together with the highly-touted Ryzen line of processors, it is a product that many are anticipating. However, despite the hype, it is doing nothing for AMD's shares as their stock dropped almost 9% in value on Thursday. This was due to a well-known Wall Street analyst who questioned the semiconductor company's ability to win against its stronger competitors.

Advanced Micro Devices investors received an unusual "sell" recommendation from Goldman Sachs analyst Toshiya Hari. According to him, the company's stocks could fall to as much as 20 percent. If that happens, then shares would cost only $11. Because of that prompting from Hari, many investors let go of their company shares. This happened despite the growing confidence with the company under CEO Lisa Su's guidance, especially since news of the AMD Vega and Ryzen broke.

This is a blow to the Sunnyvale, California-headquartered company since they are still struggling to regain their footing in both the central processing unit (CPU) and graphics processing unit (GPU) sectors. They lost their market shares to Intel and Nvidia, respectively, but they are rolling out new products thanks to Su's leadership. Their AMD Vega chip lines, aside from Ryzen, is being looked at to raise the company's value. However, at the moment, the yet-to-launch products are not doing anything to boost company stocks.

Furthermore, it is likely that neither AMD Vega nor Ryzen would make it to Microsoft's next Xbox. Dubbed Project Scorpio, its newly-released specifications revealed a Polaris GPU lying in its heart. This means that the Scorpio engine won't have any room for either AMD product.

Tech gurus who were given access to the Project Scorpio prototype said that Microsoft is managing to reach 4K capability on their latest tech even without AMD Vega or Ryzen. Instead, they are working with a customized AMD SoC that is made up of Polaris GPUs and Jaguar CPUs. The absence of AMD's tech inside Project Scorpio is likely due to Microsoft being unable to get their hands on them. But if either one makes it inside the next Xbox case, then AMD investors could gain more confidence with the company.

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