Advanced Micro Devices (AMD) has announced a new tree rendering process that vastly reduces the amount of VRAM required to create scenes. This new technology allowed the semiconductor company to render a scene with only 52 KB of VRAM, compared to the 34.8 GB that would have been required using traditional means. For the record, there are 1,000,000 KB in one GB.
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With this new method of rendering trees, AMD has the ability to greatly increase the quality of environments in games while limiting the stress they place on graphics cards. This could also allow gamers to achieve better graphics on cheaper cards, something that AMD wants, as it has recently appealed to budget-minded gamers in its battle with Nvidia (NVDA).
While AMD’s new technology is impressive, it will likely be some time before it sees widespread adoption in the game industry. Even so, it shows the effort the company is going through to advance its technologies and expand its place in the sector.
AMD Stock Movement and Ratings
AMD stock was largely unmoved on Thursday, despite its new tree rendering reveal. Even so, shares of AMD are up 18.69% year-to-date, but have fallen 10.08% over the past 12 months.
Recent analyst coverage of AMD stock is bullish.
- Melius Research analyst Ben Reitzes upgraded the stock to Buy and increased his price target to $175 from $110, suggesting a 21.89% upside.
- Four-star CFRA analyst Angelo Zino also upgraded AMD stock to Buy.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 24 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $132.17, representing a potential 7.94% downside for the shares.
