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AMD Targets OEM Market With New Ryzen Chips

By Timothy Green – Jul 22, 2020 at 7:10AM

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The Ryzen 4000 G-Series brings the company's best technology to the broader PC market.

Advanced Micro Devices (AMD 3.73%) brought its Zen 2 architecture paired with an advanced 7nm manufacturing process to desktop PCs in mid-2019 with its Ryzen 3000 series of processors. The chips very nearly closed the performance gap with semiconductor giant Intel, and they offered a strong value proposition for gamers and other power users.

Earlier this year, AMD began rolling out its Ryzen 4000 Mobile line of laptop processors using the same Zen 2 architecture and 7nm manufacturing process. Products featuring the chips have been trickling out over the past few months, giving those in the market for a new laptop a viable alternative to Intel-based devices. AMD's mobile chips feature as many as 8 CPU cores and capable integrated graphics.

Missing from AMD's Zen 2 product lineup were desktop PC chips that featured integrated graphics, removing the need for a discrete graphics card. This left AMD with only last-generation products aimed at much of the pre-built commercial and consumer desktop PC market. That situation will be resolved in the third quarter when systems using AMD's just-announced Ryzen 4000 G-Series desktop processors begin shipping.

The AMD logo on a chip.

Image source: AMD.

Going after the broader market

AMD's Ryzen 4000 G-Series processors are similar to last year's Ryzen 3000 desktop processors, but with integrated graphics included. At the low end, the Ryzen 3 4300G sports 4 CPU cores, 8 CPU threads, and 6 GPU cores. At the high end, the Ryzen 7 4700G offers 8 CPU cores, 16 CPU threads, and 8 GPU cores. All are based on the Zen 2 architecture and built using a 7nm manufacturing process.

AMD didn't announce pricing because these chips will be available exclusively to original equipment manufacturers. The company expects standard desktop towers, gaming desktops, and small form factor enterprise PCs to become available in the third quarter from a variety of partners.

AMD claims the Ryzen 4000 G-Series chips provide as much as 2.5 times the multi-threaded performance of its previous generation chips. Compared to Intel's i7-9700, an 8-core chip, AMD claims 5% better single-threaded performance, 31% better multi-threaded performance, and triple the graphics performance for its highest-end chip.

AMD's choice to eschew the do-it-yourself PC market initially with these new chips makes sense. In the gaming PC hardware market, branded systems account for about two-thirds of sales, according to Jon Peddie Research. For the broader desktop PC market, that percentage is likely much higher. AMD estimates that the OEM market is four to five times larger than the DIY market.

The graphics performance of AMD's new chips may be a big selling point. Gaming PCs featuring the chips won't be as capable systems with discrete graphics cards, but they'll be inexpensive and likely good enough for casual gaming.

For the commercial market, AMD will be launching a separate lineup of Ryzen PRO 4000 G-Series chips. These chips feature similar specifications as the standard G-Series chips, along with extra security and manageability features.

With its Ryzen 4000 G-Series chips, AMD can now address most of the PC market with its latest architecture and the leading manufacturing process. AMD has been winning market share from Intel with Ryzen, and its latest chips could help accelerate that process.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Intel. The Motley Fool has a disclosure policy.

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