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AMD Stock Falls After CPU Pricing Announcement

AMD's stock dropped 1.57% following high prices for its Threadripper Pro CPUs.

July 18, 2025 at 02:41 PM

AMD Stock Slips on Threadripper Pro Pricing

AMD stock declined after the company announced prices for its upcoming Threadripper Pro CPUs.

AMD Stock Declines Following Threadripper Pro Price Reveal

Advanced Micro Devices (AMD) experienced a 1.57% decline in stock prices on Friday after announcing pricing for its Threadripper Pro 9000 WX-Series CPUs. These processors, which are based on the Zen 5 architecture, will be priced starting at $1,649 and reaching up to $11,699 upon their release on July 23. While the pricing may surprise some investors, these CPUs are targeted at professional users demanding high performance for tasks like rendering and artificial intelligence, rather than the average consumer.

Key Takeaways

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AMD stock fell 1.57% on Friday after pricing announcement.

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Threadripper Pro CPUs priced from $1,649 to $11,699.

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These processors target professional users, not average consumers.

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Analysts maintain a generally positive outlook on AMD stock.

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Consensus rating is Moderate Buy with some potential downside.

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AMD expected to release more affordable CPUs in the future.

"These processors target professional users, not average consumers."

This explains why the pricing is higher than typical processors.

"AMD's pricing strategy may indicate its ambitions to dominate the professional computing market."

Suggests AMD is focusing on high-end users willing to pay more.

The stock reaction highlights a common concern among investors regarding pricing strategies in the tech sector. Although the high costs of the Threadripper Pro line appear daunting, AMD may be positioning itself to attract a niche market willing to pay for top-tier performance. Additionally, AMD is expected to introduce more budget-friendly alternatives without the Pro label, which could broaden its customer base. As the competition in the semiconductor market heats up, AMD's strategic pricing decisions will play a crucial role in shaping its future.

Highlights

Investors react negatively to AMD's high CPU prices.
AMD bets big on professional market with Threadripper Pro.
New pricing may limit AMD's appeal to average consumers.
AMD faces mix of optimism and skepticism from investors.

Investment Risk due to High Pricing

The high prices of the new Threadripper Pro CPUs could shock investors and impact AMD's stock performance. This pricing strategy may lead to backlash from potential buyers who expect more affordable options.

AMD's pricing strategy may indicate its ambitions to dominate the professional computing market.

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