AMD Diversification strategy See results

Abstract: October 17, 2013 afternoon in the eastern United States, AMD announced the third quarter of fiscal year 2013 earnings. The report showed that AMD third-quarter revenue of 1.46 billion U.S. dollars, the year-on-year growth of 15%, the chain growth of 26%, operating profit of 95 million U.S. dollars, net profit of 48 million U.S. dollars. AMD after a

On the afternoon of October 17, 2013, AMD released its third-quarter financial results for fiscal year 2013. The report showed that AMD third-quarter revenue of 1.46 billion U.S. dollars, the year-on-year growth of 15%, the chain growth of 26%, operating profit of 95 million U.S. dollars, net profit of 48 million U.S. dollars. AMD once again earnings a year, the third quarter of 26% of the quarter-on-quarter increase not only exceeded the 22% growth target, but also jumped into the past five years the highest quarter-on-quarter growth quarter.

As early as the earnings announcement, the investment bank Wedbush has adjusted its stock rating to outperform the market, according to AMD's positive outlook. Analysts believe AMD will benefit from the fast-growing semi-customized chip business in the medium to long term. In the next two years, AMD's new business will account for 50% of total revenue. With the implementation of the transition strategy, AMD is committed to become a diversified growth market leader.

Transition to fruition

In response to the turnaround, ITWorld commented that the robust rise in the semi-customized business to performance has amply demonstrated the determination of AMD to get rid of the image of "Intel clones". As can be seen from the financial results, AMD's semi-automatic, embedded chip business accounted for more than 30% of the total revenue, a large part of which is due to Microsoft and Sony using AMD's semi-customized embedded chip, AMD also in the game host market fully dominate. Prior to this, AMD has set up a separate semi-custom business unit, according to customer demand customized development of unique exclusive program, Sony PS4 is the department's first successful cooperation case.

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The main game host market is AMD into the embedded blue Sea first step, then AMD in the cloud terminal, thin client, digital signage, industrial automation and other subdivision areas have made rapid progress in cooperation. In China, Smaillone technology company has adopted AMD Embedded SOC chip in the Cloud terminal product, this kind of cloud terminal solution has the differentiation superiority in the education profession, the government office as well as the small and medium-sized enterprise informationization and so on, many enterprises and institutions are using this product.

Another exciting news in new business is that AMD has established a partnership with US operator Verizon to deploy the AMDSeaMicroSM15000 series of high-density servers for the global public cloud service. This cooperation benefits from the AMD acquisition Seamicro technology advantage-low power consumption, high performance, small footprint of the high-density server to meet the cloud era of computing needs.

In the new business, AMD's traditional PC business is also in the changing market demand to lead innovation. This June, AMD's APU achieved a major upgrade, the extreme a series APU can provide notebooks, ultra-thin notebooks, deformable computers, tablets to deliver better computing power, better graphics processing power and longer endurance. Acer, Asus, Dell, Hewlett-Packard, Lenovo, Samsung, Toshiba, MSI, Gigabyte and other manufacturers have launched the adoption of a new generation of APU. September, AMD-oriented graphics field, issued a new generation of independent graphics code-named "Hawaii", not only reduce power consumption, improve performance, but also to provide users with super high-definition, multiple screens of the outstanding visual experience.

New AMD poised to be ready to send

"AMD has started to recover, and in the future will launch a more diversified semi-automatic chip, the development of the ARM architecture of the server-level processor, through these initiatives for the smooth implementation of the transition to win time." "Foreign famous Science and technology blog Theverge to AMD's diversified business portfolio gave positive affirmation." In the PC industry recession, especially in the Q3 quarter of many it giants profit decline, operating continuous losses in the background, AMD is particularly difficult to turn around. Next, AMD will accelerate the pace of diversification with the rapid growth of emerging markets.

According to IDC forecast, 2016 global embedded equipment will grow to 9.6 billion parts. At the same time, the big news for AMD is that the Chinese government has revealed news of the ban on games consoles, which will bring in millions of market demand over the next three years. From the explosion of the overall embedded market, to the good prospects of the regional market, AMD provides a broad space for development, more importantly, the game host field of successful experience, the embedded market can lay a solid foundation for long-term development.

The public cloud services market also has an impressive market outlook. IDC forecasts that global public cloud services will spend $47.4 billion trillion in 2013, up to $107.2 billion by 2017. The high density server solution brought by AMD's acquisition of Seamicro will have more and more applications as cloud computing and the rise of the big data age, providing broader support for public cloud services.

As can be seen from the external environment, emerging market benefits will have a long-term positive impact on AMD, the new AMD will be more focused on long-term sustainable profitability and high-speed growth. 2014, the first ARM architecture of the 64-bit server processor "Seattle", a series of upgraded graphics card, APU will be available, and some of the revolutionary product evolution and solution upgrades, not only will change the IT industry pattern, but also will have a positive impact on our work and life.