AMD’s Revenue Expectations Reduced

AMD’s growth forecasts have been downgraded from 8% to 3% for the second quarter which ended on July 17th. The company attributes this scaling back of commercial expectations on:

“The sequential decrease is primarily due to weaker than expected consumer PC demand impacting the company’s Original Equipment Manufacturer (OEM) APU sales”

Growth in the mainstream PC market is a difficult task, and AMD’s fortunes aren’t helped by their dwindling GPU share which the new series of cards was meant to address. In Q4 2014, NVIDIA controlled a staggering 76% of the GPU market, and AMD had to make a profound impact with their new chips.

However, the 300 series were rebrands and didn’t evoke any major excitement. There’s no denying they are good value alternatives to NVIDIA though. On another note, the Fury X, while impressive, didn’t manage to blow away the 980Ti completely and didn’t leave the major impact AMD was hoping for, at least not in every respect some had hoped for. NVIDIA probably knew of the Fury X’s capabilities, and released the 980TI to counter their latest effort.

It’s also very unhealthy to hear speculation about AMD selling the company off to Samsung or even Microsoft! Competition is vital in the low-yield PC sector, and AMD needs to build on the Fury X with performance GPUs and CPUs which can match Intel’s single-threaded performance.

Do you think AMD will be purchased by a leading company any time soon?