AMD is sliding after unveiling its 7-nanometer gaming graphics card

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  • AMD on Wednesday unveiled Radeon VII, the first 7 -nanometer gaming graphics card available to consumers.
  • Shares were sliding following the product's release.
  • Earlier this week, rival Nvidia unveiled GeForce RTX 2060, the company's cheapest graphics card that can provide ray tracing.
  • Watch AMD trade live.

AMD fell 2.7% to $20.19 Wednesday after the company unveiled the first 7-nanometer gaming graphics card.

The chipmaker on Wednesday announced the Radeon VII, a 7 nm graphics processing unit (GPU), at the Global Stage for Innovation (CES) annual event. The new chip provides twice the memory and up to 36% higher performance on average in content creation applications compared to the current top-of-the-line AMD graphics cards, according to the chipmaker.

"AMD Radeon VII is the highest-performance gaming graphics card we ever created," management said in a press release. "It is designed for gamers, creators and enthusiasts who demand ultra-high quality visuals, uncompromising performance and immersive gaming experiences."

However, notably absent from the Radeon VII announcement was any mention of real-time ray tracing, a niche technology that rival Nvidia is touting in its GPUs. Ray tracing allows for more cinematic and realistic visuals.

Just two days ago, Nvidia unveiled a series of new products, including GeForce RTX 2060, its cheapest graphics card that can provide ray tracing. For comparison, Nvidia's RTX 2060 sports a starting price of $346 and AMD's Radeon VII will cost $700 when it's available February 7. But Radeon VII is at least $300 less than Nvidia's top GPU.

Later in the first quarter, AMD is widely expected to roll out its 7 nm central processing units (CPU). The market has hope that the high-end 7nm central processing unit can help AMD grab market share from Intel, which was contending with a production delay for its 10-nanometer chips last year, Christopher Rolland, a semiconductor analyst at Susquehanna International Group recently told Markets Insider.

AMD was up 72% in the past year.

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