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AMD revenue to grow in 2014, no thanks to PCs

by Mark Tyson on 22 January 2014, 15:33

Tags: AMD (NYSE:AMD)

Quick Link: HEXUS.net/qab7wr

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AMD announced its Q4 results yesterday evening, after the markets closed in the US. CEO Rory Read was said to sound optimistic in a post results earnings conference citing growth in ARM server chip sales and the expectation of continued momentum in next gen consoles. However desktop and notebook PC components such as APUs and graphics cards look set to downtrend seasonally in the near future and remain unpredictable in the coming year.

First of all let's look at some of the cold hard figures, before we move onto further discussion of the conference call. AMD reported a Q4 2013 profit of $89 million. A year previously it reported losses of $473 million. The chipmaker's revenue rose to $1.59 billion from $1.16 billion. The result was better than expected according to Marketwatch. However official projections in the results expects revenue to decrease this current quarter by 16 per cent. Due to the downbeat expectations shares have been impacted badly in after hours trading - at the time of writing AMD's share price is down over 10 per cent on the NYSE.

Despite the downward projections in the official financial results statements VentureBeat detected optimism within the post-results conference. CEO Rory Read thinks AMD has a chance to grow quickly should the unpredictable PC market have any kind of revival. One of the most badly impacted areas of AMD's business is the entry-level notebooks which have been victims of the tablet market growth.

ARM servers are a bright opportunity for AMD, said Read, with designs of the company's first 64-bit ARM server chips expected to be completed in the current quarter. Low power ARM chips are expected to become increasingly popular in the server market.

Micro servers are going to be big

It is hoped that the next gen consoles continue to sell well after their successful launches. Such semi-custom chips as used by both Sony and Microsoft are hoped to make up over half of AMD's revenue by the end of 2015. Currently the sales of such chips makes up 20 per cent of the firm's income.

Remember that AMD launched its innovative Kaveri APUs only last week, (Kaveri A8-7600 reviewed here) so it's far too early to know how many computing products are going to sport one of this range of HSA chips, or how well they will sell.



HEXUS Forums :: 7 Comments

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The ARM chips were meant to be late 2014 before - it seems the timetable was brought forward.
Not only are they used in PS4 and XBONE but they will be used in the new Nintendo Handheld and Console
Well if over the past 5 years they had focussed their PC chip efforts on raw CPU performance, they might not have fallen so ridiculously far behind Intel and the PC enthusiast market might not be quite so stagnant as it currently is wrt CPU tech.
I don't want a bloody GPU on my CPU. That's what a GPU is for! Just give me as much performance from the processor as possible and I'll be a happy gamer/nerd.
It's completely your own fault, AMD: you focussed on the wrong thing to now turn around and say 'it's no thanks to the PC market.'

(Don't get me wrong, there's a place for low power, all-in-one CPU/GPU chips, but the PC enthusiast market is NOT that place).
Roobubba:
Yeah AMD, now you can suffer with your 7.2 million chips in the PS4/XB1, with guaranteed sales for the next 5-8 years. I don't think they mind!

If steam boxes take off well then I can see a lot of APU's being used for those too. They're making great cpu's for people who don't want/need seperate GPU's and it saves a fair bit not having to get a dedicated gpu.

Would steam boxes be counted as PC sales?

I agree for the enthusiast market apu chips aren't that suited, but even still you can crossfire with the onboard gpu so its not all wasted.
abychristy
Not only are they used in PS4 and XBONE but they will be used in the new Nintendo Handheld and Console


Yes. This was to be expected. Now, bring on the Mantle and see the GPU sales zoom.