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Advanced Micro Devices, Inc. Message Board

  • should_have_figured should_have_figured Oct 2, 2013 5:43 PM Flag

    3 Reasons AMD's Moat Is Getting Bigger Oct 2 2013, 10:45 | about: AMD

    AMD is set to dominate the console market, is making huge advancements in the embedded chip market, and is introducing system-on-chip ("SoC") designs on its road map. For these reasons, by 2014, AMD could be worth more than the $2.9 billion market capitalization that it is trading at now.

    1) Moat in Console and PC Market

    AMD fell steadily from 2006, and was stuck in a range since 2008. After bottoming earlier this year, investors began to accumulate shares in the company, due to excitement that AMD would supply the chips for Sony's (SNE) PlayStation 4 and Microsoft's (MSFT) Xbox One.

    AMD Chart

    AMD data by YCharts

    AMD is now in the driver's seat. It now effectively squeezes NVIDIA and Intel out of console market because it sets the chip design for the sector. This arrangement indirectly gives AMD an advantage in the PC gaming market. By supplying a similar architecture for consoles, AMD is also free to rekindle the focus of game development back to the PC market. Games developed on current consoles first needed to be ported back to the PC.

    To address the lack of access to low level GPU functions on the PC, AMD introduced Mantle. Mantle allows access to the driver at a much lower level. Mantle could therefore replace DirectX and give game makers more high performance access to the graphics chip:

    (click to enlarge)

    2) Embedded Chips

    Bald Eagle is an energy efficient chip that will be in AMD's 2014 road map. The 4-core chip consumes only 35 watts under the x86 architecture. The chip conforms to the GCN, or Graphics Core Next, architecture.

    (click to enlarge)

    Source: AMD

    If a device needs more graphics power, AMD will make Adelaar available. This chipset is a dedicated chipset that has 2GB of memory and includes GCN.

    AMD said its transformation in embedded solutions will be done in three steps. The company already reduced costs between Q3/2012 and Q1/2013, aims to be free cash flow positive, and is setting out to be a leader in the server and graphics market in 2014 and beyond:

    (click to enlarge)

    3) System-on-Chip

    Hierofalcon was designed to target data centers, and may carry as many as 8 ARM Cortex-A68 cores. An upgrade to Jaguar x86 cores is available with Steppe Eagle. The latter solution is GCN-based and is set to be available by the first half of 2014.

    Sentiment: Buy

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    • 2.9 billion is a lowball figure...they're just trying not to look dumb...I am saying at least double that...anyone in their right mind who can do math can and does see that...the next generation console goes beyond the living room, for those who don't, tablet, etc... yes...everything, todays world it is not just my phone, tablet,'s the works,everything...go ahead pess laugh....but you don't see the whole picture....It's not just the's everything around you, technology at it's height...go figure...I will be able to run my blender from my console, in fact I do it's not just the consoles everyone, it's everything with a chip

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