What Can Drive AMD’s Top-Line Going Forward?

AMD (NYSE:AMD) derives an increasing proportion of its revenue from high growth markets that include semi-custom devices, professional graphics, dense server and embedded solutions. A few years back, the company devised a unified gaming strategy that addresses its plan to drive the gaming market across consoles, cloud platforms, tablets and PCs. Gaming is one of the key pillars of AMD’s semi-custom chip business. We believe that AMD is effectively positioned to drive the next revolution in gaming. The company powers all major gaming consoles including Sony’s PlayStation 4, Nintendo’s Wii U and Microsoft’s Xbox One.

Furthermore, AMD is uniquely positioned in the server processor market as it has to offer its customers both ARM and x86 architecture based solutions for low-power and high-performance embedded compute designs. In 2012, the company announced its collaboration with ARM Holdings to design server processors using the ARM technology in addition to its x86 processors for multiple markets. This makes AMD the only processor provider to bridge the x86 and 64-bit ARM ecosystems. The company is on its way to launch its next-generation Zen based CPU in 2017. The company claims that it has already secured several key design wins for the Zen based service CPU with global OEMs. This can help AMD regain some of its lost market share in the server processor market in the near term.

See our complete analysis for AMD here

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