AMD’s position in GPU market may strengthen with R9 Fury X
In the prior part of the series, we discussed the launch of AMD’s (AMD) Radeon Fury series, which is focused on the PC gaming space. All of the next generation consoles like Sony’s (SNE) PlayStation 4, Nintendo’s Wii U, and Microsoft’s (MSFT) Xbox One employ AMD’s chips. By supplying semi-custom chips for gaming consoles, AMD managed to generate positive revenues in 2014.
AMD’s Radeon Fury boasts of high bandwidth memory (or HBM). Joe Macri, chief technology officer for AMD, shared that HBM is a stacked memory that offers three times better performance than the traditional random access memory (or RAM) that GPUs (graphics processing units) use currently. HBM also reduces power consumption. AMD’s Radeon Fury is a valuable addition to AMD’s GPU architecture that could help the company enhance its presence in the GPU space.
Intel leads the GPU space
The above chart shows that Intel (INTC) is the leader in the GPU space. According to Jon Peddie Research, AMD’s competitive pricing and improved hardware helped it increase its market share in the professional graphics market from 12% in 2009 to 25% in 2014. In December 2014, Apple (AAPL) announced that its new Mac Pro uses AMD’s dual FirePro professional graphics solutions. Increased mobile demand in the Chinese (FXI) markets combined with the high demand for GPUs in the automobile infotainment space bode well for the company’s future growth.