In a bid to capitalize on the growing popularity of gaming
Advanced Micro Devices Inc.
) recently launched its new graphics processing units (GPUs) -
AMD Radeon™ R7 240, AMD Radeon™ R7 250 and AMD Radeon™ R7
The AMD Radeon R7 Series graphics cards are ideal for users
who need superior graphic performance for gaming. Powered by AMD
Graphics Core Next (GCN) architecture, the new graphics cards
support Mantle technology and provide strong graphics performance
from web browsing to video editing. Additionally, AMD's GPUs
support DirectX® 11.2 and are compatible with
's (MSFT) Windows 8.1 platforms, which give it the desired speed
for optimal graphics solutions required in notebooks and
Additionally, AMD Radeon R7 260X graphics card features a new
AMD TrueAudio technology, which gives good 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.
Additionally, AMD's processor has 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, 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
A study conducted by DFC Intelligence suggests that the global
gaming market will increase from $67.0 billion in 2012 to $82.0
billion in 2017. Further, 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 stakes.
The gaming hardware market is currently reeling under
competitive pressure from emerging social network 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 new products and strong mobile
design wins. Also, the company's bottom line beat the Zacks
Although the decline in PC demand may affect results in the
upcoming quarter, increased game console wins, launch of new
products, new offerings and good execution from the company can
help win new customers.
Currently, AMD holds a Zacks Rank #3 (Hold).
ADV MICRO DEV (AMD): Free Stock Analysis
INTEL CORP (INTC): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis
SONY CORP ADR (SNE): Free Stock Analysis
To read this article on Zacks.com click here.