AMD leaves Intel in the dust and it’s not done yet

modern micro devices (NASDAQ: AMD) was a thorn in the side Intel’s (NASDAQ: INTC) Page in the central processing unit (CPU) market since the introduction of the former Ryzen processors, which originally launched in March 2017.

AMD held just under 18% of the CPU market at the end of 2016 before Ryzen hit. According to the latest third-party estimates, the chip maker now controls almost 37% of the market. Other reliable estimates from the video game platform Steam also suggest that AMD has consistently suppressed Intel’s CPU dominance.

And AMD isn’t done pounding Intel into CPUs just yet – especially since it launched its latest Ryzen 5000 CPUs. Here’s why.

Ryzen 5000 could extend AMD’s advantage over Intel

Intel has historically had an advantage over AMD in terms of single-threaded CPU performance, which is considered more important for both average users and gaming enthusiasts. However, AMD recently closed the single-threaded performance gap by increasing the clock speed of its CPUs.

AMD may have outperformed Intel in this regard with the new Ryzen 5000 processors. Based on the latest Zen 3 microarchitecture, the AMD Ryzen 9 5900X processor, based on the latest Zen 3 microarchitecture, is 6% higher than Intel’s competing Tiger Lake-based Core i7 chip, according to tests conducted by AnandTech .

Compared to the Ryzen 9 3950X of the previous generation (based on the Zen 2 architecture), AMD was able to achieve a single-threaded performance increase of 17.8% this time. With that, AMD may have regained the single-threaded performance crown after more than a decade.

According to AMD, a high-end Ryzen 5000 processor can increase gaming performance by 26% compared to the previous generation chip. AMD also claims that the chip has 7% faster gaming performance than the competing Intel chip.

But the increased performance will now come at a price. AMD seems to have given up its previous strategy of undercutting competing Intel chips and is increasing the prices of the Ryzen 5000 processors across the board compared to the prices of their predecessors. Obviously, AMD is trying to translate its single-threaded performance advantage into more batter. But is it the right thing?

Chipzilla’s battles could be a boon for Ryzen 5000

Now that AMD appears to have dwarfed Intel in terms of single-threaded performance, it’s not surprising that the company is charging a premium from consumers. The chipmaker is now in a good position to raise prices given the growing clout in the CPU market and the technological advantage its chips enjoy over Intel.

AMD’s Ryzen 5000 processors are based on a refined version of the 7 nanometer (nm) process used in previous generation Zen 2 processors, allowing the chip maker to achieve improved performance and speed gains. Intel, on the other hand, is likely to get stuck on a 14nm process when it releases its 11^thGeneration Rocket Lake desktop processors in Q1 2021.

Rumor has it that Intel may not start its 12^th10nm Alder Lake processors of the generation through the second half of 2021 to compete with AMD’s 7nm process. As such, AMD is likely to continue to enjoy a technology edge over Intel, especially given the rumor that it could transition to a 5nm manufacturing process using the Zen 4 microarchitecture by the end of 2021.

So don’t be surprised if AMD continues to capture Intel’s market share and remains a top growth stock for the future thanks to a combination of improved CPU sales and higher pricing power.