Advanced Micro Devices Inc. (AMD) 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 Microsoft’s (MSFT) 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 the users.
As per research conducted by Mercury, 123.9 million discrete GPUs were shipped in the third quarter of fiscal 2012; out of which NVIDIA Corp. (NVDA) holds 65.0% market share, followed by Intel (INTC) 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 #3 (Hold).
More From Zacks.com