AMD apparently has its 7nm Navi graphics card running already in its lab, with Fudzilla claiming its sources have said AMD’s next-gen GPU “looks good” and “better than expected”.

The Navi GPU manufactured on the 7nm process is due to launch in the back half of 2019, and AMD’s progress with lab testing suggests Team Red is well on target to hit that date.

Fudzilla goes on to say “sources also suggested that the 7nm GPU looks better than expected.” Which, er, kind of relies on us knowing what those expectations were. Whatever the case, the source mentioned no specifics on performance or power consumption. However, they do hint once again that we’re looking at GeForce GTX 1080 levels of performance but within the $250 price point currently occupied by the GTX 1060 and AMD Radeon RX 580.

It’s not a lot to go on, but that level of performance at that price point could be a massive step forward for the mid-range GPU market and could prove incredibly exciting in lifting the bottom line of PC gaming performance upwards. Again though, this is based on a threadbare rumour.

Optimistically, a Q3 2019 launch seems feasible for Navi, so it'll be interesting to see how it shakes out and what Nvidia will also bring to the table.

Despite this positive outlook for AMD, market analyst New Street Research isn’t overly impressed. It’s told investors it expects AMD’s stock value to plummet 30% shortly. This is due to what NSR perceives as an over-valuation of AMD’s share price. AMD is currently worth around 12x what it was two years ago, something which NSR doesn't necessarily think will be the case for long, believing a market correction is due.

"AMD is in a tough position, competing with Intel, who can spend an order of magnitude more on R&D,” said NSR ‘s Pierre Ferragu. “Intel can easily bring to market an architecture similar to AMD’s, with better performance… We expect signs of slowdown or indications of a competitive response by Intel to materialise by the end of 2019.” Clearly, someone didn't get the memo about Intel's recent struggles with the 10nm node.

This is obviously a wholly separate struggle to the graphics card market though, and it's really all to play for. Nvidia hasn't exactly stumbled, but it's certainly not set the world ablaze with the RTX 20 Series, particularly for those not looking to spend upwards of $600, while Intel, well, Intel is in a rocky patch but has immense pools of wealth to fall back on.