In a bid to capitalize on the growing popularity of gaming
Advanced Micro Devices Inc.
) recently launched a graphic processing unit (GPU) - AMD Radeon™
R9 290 - the latest addition to the AMD Radeon™ R9 Series
The AMD Radeon R9 290 graphics card is ideal for users who
need superior graphic performance for gaming. Powered by AMD
Graphics Core Next (GCN) architecture, the new graphics card
supports Mantle technology and provides strong graphics
performance from web browsing to video editing.
Priced at $399, the new graphics card includes 2,560 stream
processing units, 4GB GDDR5 memory, up to 5.0Gbps memory clock
speed and 320GB/s memory bandwidth. Also, AMD's GPUs support
DirectX® 11.2, OpenGL 4.3 and Mantle, which give it the desired
speed for optimal graphics solutions required in notebooks and
Additionally, AMD Radeon R9 290 graphics card features a new
AMD TrueAudio technology, which gives enhanced sound effect for
gamers through stereo headsets and speakers3. Consumers prefer an
improved soundscape for gaming along with rich graphics. Thus,
AMD's revenues stand to benefit significantly if the latest GPU
can cater to the rising demand of the users.
AMD's processors have become highly popular among gaming
console makers and will be used in
) PlayStation 4, to be released on Nov 15 in the U.S. AMD's
processor has also been used in
) new Xbox video game console, to be launched on Nov 22.
Gaming has become a focus area for AMD now. Both the next
generation gaming consoles will feature AMD accelerated
processing units (APUs), which will boost the company's business.
We believe that these wins have positioned AMD at the center of
the console gaming industry and will lessen the company's
dependence on the declining personal computer market. It will
possibly help the company to regain some of the lost market share
from rivals like NVIDIA (NVDA) and
A report from IDC estimates that there will be 257 million
active consoles worldwide by 2015. These estimates suggest that
there are opportunities for companies like AMD to increase their
The gaming hardware market is currently reeling under
competitive pressure from emerging social networking sites and
competing hardware platforms such as smartphones and tablets.
However, we expect the hardware sales to increase because of the
upcoming new consoles. Since AMD's products are being used in all
the major platforms, it should see good growth from the
AMD is the world's second-largest maker of microprocessors. In
the last reported quarter, AMD's top-line numbers were better
than its guidance, supported by the ramp up of semi-custom
System-on-Chips, new products and strong mobile design wins.
Also, the company's bottom line beat the Zacks Consensus
Currently, AMD holds a Zacks Rank #3 (Hold).
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