Advanced Micro Devices (AMD) stock was down on Monday, despite new leaks and rumors pointing to an incredibly fast Zen 6 Ryzen CPU on the horizon. According to one leaker, AMD has confirmed speeds of 6GHz for its next-generation Zen 6 CPU. There have also been rumors that the processor can reach speeds beyond 7GHz.
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If AMD can release a desktop processor with speeds above 7GHz, it would be a massive win for the semiconductor company. For comparison, the fastest AMD CPU on the market right now is the Ryzen 9 9950X, with a top speed of 5.7GHz. Additionally, a 7GHz processor would dethrone Intel’s (INTC) Core i9-14900K, the fastest desktop processor available at 6GHz.
Unfortunately, it will still be some time before AMD releases its Zen 6 Ryzen CPUs. These aren’t expected to hit the market until 2026, giving Intel time to respond with its own new processors. It’s possible Intel will be able to match or surpass AMD with its next generation of CPUs.
What This Means for AMD Stock
AMD has already been stealing customers away from Intel, specifically those looking for powerful components to play video games with. If it can put out a new processor faster than Intel’s, this would only further help it draw customers away from its rival chipmaker.
AMD stock experienced a minuscule drop on Monday and remained up 21.07% year-to-date. However, the company’s shares have fallen 18.58% over the past 12 months.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 25 Buy and 10 Hold ratings over the past 12 months. With that comes an average AMD stock price target of $135.97, representing a potential 7.11% downside for the shares.
