Advanced Micro Devices (AMD) has made a bold claim about the future performance of its upcoming Zen 5 CPUs. The chip designer asserts that Microsoft’s forthcoming Windows 11 version 24H2 update will significantly enhance performance for their new Zen 5 processors.
Reports suggest that AMD has been offering discounts on its Ryzen 9000 series to stimulate demand, which has not met expectations. The company says that the performance boost will come from a specific branch prediction code optimized for Windows 11 version 24H2. This code, according to reports, is expected to be included in the update scheduled for release next month. AMD predicts that the update will boost performance across its CPU generations, with Zen 5 seeing the most notable improvement.
The company expects a 13% performance increase for its 9950X CPU in Far Cry 6 when running on 24H2 compared to 23H2. Similarly, Cyberpunk 2077 is projected to see a 7% performance improvement.
While AMD focuses on the performance potential of its Zen 5 CPUs, analysts are evaluating the company’s broader strategy, including its $4.9 billion acquisition of AI server company ZT Systems. This move is seen as an attempt to compete with Nvidia in the declining PC market.
Analysts, like Rick Schafer from Oppenheimer and William Stein from Truist Securities, remain divided on AMD’s ability to challenge Nvidia’s dominance in AI.
Wedbush Securities’ Matt Bryson and Oppenheimer’s Rick Schafer highlight Nvidia’s strong position in AI, emphasizing the company’s robust quarterly performance driven by demand from cloud service providers and enterprise AI. Despite this, AMD’s stock has gained 44% in the past year, outperforming Nvidia’s 171% growth.
Investors interested in AMD and Nvidia can gain exposure through ETFs like Invesco QQQ Trust, Series 1 (QQQ) and SPDR S&P 500 (SPY).
As of Friday’s premarket trading, AMD stock was up 0.77% at $152.86.
