Advanced Micro Devices Inc.
) recently launched its latest notebook graphics processing units
(GPUs), AMD Radeon™ HD 8970M. The GPUs are specially designed for
ultrathin notebooks or ultrabooks as well as desktops.
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AMD's GPUs are compatible with
) Windows 8 platforms, which give it the desired speed to provide
optimal graphics solutions for notebooks and desktops.
The AMD Radeon HD 8970M graphics processing unit (GPU) has been
designed for users who need superior performance for
gaming. Powered by AMD Graphics Core Next (GCN)
architecture, the new graphics card delivers high speed and
consumes less power.
Consumers prefer an improved interface with rich graphics for
gaming, which require good battery life to power multimedia
applications on notebooks. Thus, AMD's revenues stand to benefit
significantly if the latest GPU can cater to the rising demand of
As per research conducted by Jon Peddie Research (JPR), for the
fourth quarter of fiscal 2012, total discrete GPUs (desktop and
notebook) were down 9.7% year over year. Infact, all major
players witnessed a decline in their overall PC graphics
) graphics shipments declining the most by 16.7%, followed by AMD
As per IDC, first-quarter shipments of PCs fell 14% worldwide
from last year, the steepest quarterly drop since 1994. The
market has suffered the onslaught of mobile devices including
tablets, convertibles and ultrabooks and going by consumer demand
trends, this cannibalization should continue.
Despite the popularity of tablets and smartphones, JPR predicts
that PC graphics will grow at a compound annual growth rate
(CAGR) of 3.2% from 2012 to 2016 with total shipments of graphics
chips to be 549 million units in 2016.
AMD delivered decent first quarter 2013 results. The company's
Computing Solutions segment was down sequentially but the
Graphics business did well in the last quarter due to
accelerating desktop GPU channel sales, game console royalty
sales and workstation graphic sales.
Although the decline in PC demand may affect results in the
upcoming quarter, the release of new products, increased game
console wins, new offerings and good execution from the company
can help win new customers.
Currently, AMD holds a Zacks Rank #3 (Hold).