AMD Enhances Its Desktop Processor Lineup, Which Could Help Increase Its Market Share

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AMD: Advanced Micro Devices logo
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Advanced Micro Devices

Earlier this week, AMD (NYSE:AMD) expanded its desktop processor lineup with new processors that deliver superior performance, features, and near-silent operations. The two new processors (A10-7890K and Athlon(TM) X4 880K) offer increasingly powerful processor options available for anyone seeking outstanding gameplay and power efficiency for their desktop PC. (Read Press Release for more details)

AMD has lost considerable market share in PC processors to Intel (NASDAQ:INTC) in the last few years. Intel has always had the upper hand on AMD in the PC processor market, consistently hitting the mainstream price point that for years has been the sweet spot for AMD. And this has continued to undermine AMD’s competitiveness in the market. Nevertheless, AMD has managed to gain share from Intel in the past, leveraging niche opportunities and occasional inflection points in the marketplace.

We believe that an upgraded product portfolio and an increased focus on the commercial segment can help increase AMD’s PC processor market share in the future. However, the revenue contribution from PCs will continue to decline in the future, given the company’s increasing focus on other alternate growth markets. These include semi-custom and ultra-low power processors, professional graphics processors, as well as processors for dense server and embedded solutions.

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Take a look at the table below which summarizes our forecast for AMD in the PC market. As we highlight in the table, we forecast a reduced percentage of PCs in the sales mix to be accompanied by a modest increase in AMD’s market share.

AMD

Our price estimate of $2.25 for AMD is just marginally above the current market price.

See our complete analysis for AMD

Have more questions about AMD? See the links below:

>> Embedded & Semi-Custom, PC and Server Processors & Graphics: What’s AMD’s Revenue and EBITDA Breakdown?

>> By What Percentage Did AMD’s Revenue & EBITDA Grow In The Last 3 Years?

>> What’s AMD’s Fundamental Value Based On Expected 2015 Results?

>> How Important Is the PC Market For AMD’s Business?

>> How Has AMD’s Revenue And EBITDA Composition Changed Between 2012 And 2015?

>> AMD’s Revenue & EBITDA Growth in The Next 5 Years: Trefis Estimate

>> AMD’s Potential Valuation In 2020

>> How Much Revenue Can AMD Earn From Its Server Business BY 2020?

>> How Much Revenue Can AMD Add By Increasing Its GPU Market Share?: Trefis Estimate

>> How Is AMD’s Revenue & EBITDA Composition Expected To Change In The Future?

>> AMD: The Year 2015 In Review

>> What’s AMD’s Fundamental Value Based On Expected 2016 Results?

>> What Happens To AMD’s Valuation If Embedded & Semicustom Revenue Declines To $2 Billion In 2016?

>> Where is AMD’s 2016 Revenue Growth Expected To Come From?

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