Advanced Micro Devices Inc.
) launched its latest range of mobile and desktop graphics
processing units (GPUs), AMD Radeon HD 8000M Series, at the
Consumer Electronics Show 2013. The GPUs are specially designed
for ultrathin notebooks or ultrabooks, as well as desktops.
Currently, Asustek, Lenovo and Samsung are incorporating AMD's
mobile GPUs in their devices. AMD's GPUs are ideal to run on
) Windows 8 platforms, which give it the desired speed to provide
optimal graphic solutions for notebooks and desktops. It is an
ideal product for users who need superior performance for gaming,
viewing online HD videos, preparing presentations and editing
photos or videos.
Consumers prefer an improved interface that projects rich
graphics for gaming and other purposes, which require good
battery life to continue the multimedia applications running in
the 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 Mercury, 123.9 million discrete
GPUs were shipped in the third quarter of fiscal 2012; out of
) holds 65.0% market share, followed by
) and AMD.
As per IDC, the PC segment will grow at a CAGR of 7.1% to
touch 528.5 million units in 2016. The market has suffered the
onslaught of mobile devices including tablets, convertibles and
ultrabooks and going by consumer demand trends, this
cannibalization should continue.
AMD's revenues in the third quarter came in at $1.27 billion,
down 10.2% sequentially and 24.9% year over year, more or less in
line with its revised guidance of a 10% sequential decline (at
the mid-point). Revenues were also in line with consensus
expectations of $1.28 billion. The Graphics business generated
27% of its sales and was down 6.8% sequentially and 15.1% from
the year-ago quarter.
AMD, Nvidia, Intel and Microsoft shares all carry a Zacks Rank
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