AMD Considers Its Chances: Outlines Three Growth Opportunities

From X-bit Labs: Following the announcements of financial results for the quarter and the plan to layoff over 1700 employees, Advanced Micro Devices outlined three rapidly growing opportunities, which the company needs to address. AMD believes that it should focus on developing solutions for cloud servers, embedded applications and ultraportable/ultra low-power applications. Surprisingly, AMD did not note that it needs to keep its PC product line competitive as well.

“Our long-term strategy is to rebalance our business towards faster-growing segments of the market. Today, approximately 85% of our business is focused on the legacy PC portion of the market, [which is] projected to have slowing growth over the next several years. We intend to drive 40% to 50% of our portfolio to faster-growth markets where our IP is the key differentiator,” said Rory Read, chief executive officer of AMD, during a conference call with financial analysts.

“The dense cloud market is one of the fastest-growing parts of the data center market. Our long-term path to success is in providing customers with disruptive technologies and choice, just as we did when we brought 64-bit computing to the mainstream server market with AMD 64,” said Mr. Read.

“We are focused on growing our share in targeted embedded markets. These include communications, industrial and gaming, which will outpace the PC industry growth for the foreseeable future. Our semi-custom APUs already have a number of confidential high-volume design wins in place. We plan for our embedded business to comprise approximately 20% of our quarterly revenue by the fourth quarter of 2013, up from 5% today,” proclaimed chief exec of AMD.

“We will continue to focus on driving down into the ultraportable and ultra low-power form-factors that continue to grow rapidly. APUs are ideally suited for these new products, from ultra-thins and tablets to a new breed of entry-level notebooks that will drive growth in the emerging markets,” said Rory Read.

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