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AMD is shooting for 50 per cent graphics market share says CEO

by Mark Tyson on 2 December 2016, 15:31

Tags: AMD (NYSE:AMD)

Quick Link: HEXUS.net/qadbrx

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AMD is readying a pre-launch publicity blitz in less than a fortnight at the New Horizon event in Austin Texas. While that event will provide "an exclusive advance preview of our new 'Zen' CPU ahead of its 2017 Q1 launch," many are hoping, and even expecting, a glimpse of the Vega GPU as a little bonus from AMD.

On Wednesday AMD President & CEO Lisa Su was questioned by analysts about GPU business progress and aspirations. This was at the investor focussed Credit Suisse 20th Annual Technology, Media & Telecom Conference, attended by the AMD boss. Web site WCCF Tech listened in and sifted a very interesting couple of nuggets from the talks that day.

50/50 graphics market share

John Pitzer, Semiconductor Analyst at Credit Suisse put a question to Dr Su, asking about the market progress of Polaris in 2016 and hopes for Vega in 2017. Furthermore, he enquired if AMD could claw back its market share to its previous heights. WCCF Tech transcribed Dr Su's response as follows:

"We have made very good progress I would say in the first couple of quarters this year in terms of graphics. I think it's nice, when you look at graphics it's both in the consumer side on the channel as well as in the OEM business and on the professional graphics market. There's a large opportunity. I think we've gained a good amount of share over the last few quarters, we're going to continue and consistently drive [share growth]. We believe that there's no reason we can't be at 50/50 share overtime, but it will certainly take some time to get there."

Dr Su went on to express her enthusiasm and optimism for AMD growth in graphics. She described the graphics chip market as being "on fire". So far we have only seen the lower end of the market catered for by AMD's Polaris offerings but "our strategy in GPUs is to play across the entire market," affirmed the company CEO.

One final important thing that AMD is acutely aware of is building and enhancing relationships with consumers and other businesses. AMD wants to inspire more loyalty as customers appreciate its hardware and supporting software, and intends to become "very sticky" going forward.

29/71 is the status quo

In our most recent third party sourced report on AMD and Nvidia's respective market shares it was revealed that AMD had 29 per cent of the discrete GPU add-in board (AiB) market. This compares very favourably to a year ago, when it had sunk to under 19 per cent market share.



HEXUS Forums :: 18 Comments

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“intends to become ”very sticky“ going forward.”

Urgh, vendor specific features? I suppose taken to a modest degree it's a good thing as it encourages AMD and nVidia to diversify into new areas. As long as they stay in the habit of merging to a common technology after a period of time.

The Fury/Fury X ended up very competitive with the 980ti after a couple of driver revisions, the X being faster and the Fury being more power efficient. Given that GP102 is already available I wouldn't be at all surprised if Vega managed to surpass it.

The real test will be at the GTX 1070 level though.
Adoredtv did a great video on the issues with amds market share.
outwar6010
Adoredtv did a great video on the issues with amds market share.

I wouldn't put much faith in the position. He said six months Nvidia was doomed due to AMD involvement in consoles,etc(master plan videos),and now he goes the opposite way saying AMD is doomed since he didn't predict Nvidia making so much money(no wonder since Nvidia launched before them,and has their whole range out now) in 1Q,etc.

Then he goes on how Vega is delayed(IIRC) since the concentrating on other areas even though it is quite obvious,that if it uses HBM2,its tied to the production schedule of Hynix who basically said they would START in Q3 2016 in August this year.

Plus even if smaller Vega uses GDDR5/GDDR5X its most likely they are using GF 14NM partly due to WSA and if you look at Polaris 10 and Polaris 11,both chips are on their THIRD stepping already. Not even the RX460 uses a full chip which is why it gets thrashed by the GTX1050TI.

We don't even know how this has impacted Polaris 10 and 11 sales in the OEM space either.

So imagine a larger 300MM2 to 400MM2 chip?? Nvidia used Samsung who licensed the process to GF in 2014 and GF are a year behind Samsung in making 14NM chips,and even Samsung has not produced chips over 200MM2 in size.

Yet,AMD's share price is at a level which has not been seen for a very long time,and even though AMD was considered finished,they have managed to more or less doubled their card sales from one year ago.

Q3 2016 is the biggest quarter for card sales in two years,both companies have benefit and Nvidia more,since they have a full stack out anyway,and the Nvidia cards are all cheaper than their AMD equivalents to make too,hence they have better margins. But compared to one year ago,AMD were in far worse situation on all levels.

Sure Nvidia is making more money,but AMD needs to start somewhere. Even the talk about the GTX200 series taking out the HD4000 series in sales,etc ignores the whole negativity about AMD at the time when they lost over $4 billion between 2007 and 2008,had failures with the HD2000 and HD3000 series and the first Phenom,Nvidia and its Focus Group members like Rollo,were shouting about Nvidia PhysX,etc at every step and they did even sponsor more games too. AMD was considered by many to nearly go bankrupt at that point,so no wonder when Nvidia dropped its prices they got more sales in the end.

Thats why they ended up signing WSA as part of them divesting their fabs. WSA is the main reason AMD has made any losses since.
adoredtv bias toward AMD but that shills didn't receive groupie luv from red camp & now switched back to NV!
I can't see them hitting 50% this generation as most people I know have already invested in the 10 series Nvidia cards and won't see any point in moving sideways to a new AMD. Gamers on more of a budget have mostly already gone for the RX470/RX480 so GPU sales are going to slow down over the next year or so (unless people still holding on to 9 series cards jump ship to Vega - maybe that is their hope). Still, good luck to them though I mean competition is always a good thing, I just think they aiming a bit too high there.