Please ensure Javascript is enabled for purposes of website accessibility

AMD Broadens Its Battle Against NVIDIA

By Timothy Green - Updated Oct 7, 2019 at 5:57PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The low-end RX 5500 graphics card will go toe to toe with NVIDIA’s GTX 1650.

Advanced Micro Devices (AMD -0.94%) made a splash earlier this year when it launched the RX 5700 and RX 5700 XT graphics cards. Priced at $349 and $399, respectively, after a prelaunch price cut, the cards beat comparably priced products from NVIDIA on performance. That's something that hasn't happened in many years.

On Monday, AMD announced the next step in its graphics comeback. The RX 5500, available in both desktop and laptop versions, will battle NVIDIA's $149 GTX 1650. AMD hasn't announced pricing, but given how aggressive the company has been so far with its 5000-series cards, AMD will likely aim to make the RX 5500 a better value than NVIDIA's offering.

The RX 5500 graphics chip.

The RX 5500 graphics chip. Image source: AMD.

The focus at first will be on OEM systems. The RX 5500 will be available as part of desktop and laptop systems from HP, Lenovo, Acer, and MSI in the coming months. Retail availability for the stand-alone graphics cards from AMD's board partners is expected sometime in the fourth quarter.

AMD claims that its RX 5500, which is built on the same 7nm manufacturing process as its beefier siblings, beats the GTX 1650 on performance by as much as 37%. This number comes straight from AMD, so take it with a grain of salt. But if AMD opts for a $149 price tag for the desktop card, NVIDIA may need to cut prices to compete.

Some of AMD's older graphics cards already compete in the sub-$200 price range, but the RX 5500 will bring new features, better performance, and improved efficiency. AMD claimed a 32.1% unit share of the discrete desktop graphics card market in the second quarter, according to Jon Peddie Research. Once it becomes available, the RX 5500 could help drive that number higher.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Advanced Micro Devices, Inc. Stock Quote
Advanced Micro Devices, Inc.
AMD
$98.12 (-0.94%) $0.93

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
390%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.