AMD’s graphics business
Advanced Micro Devices (AMD) is seeing strong growth in the PC processor market. It’s also seeing growing adoption of its Radeon GPUs (graphics processing units), which it developed to compete with NVIDIA’s (NVDA) gaming GPUs. However, AMD’s GPU growth has been slower than NVIDIA’s, as the former lags behind the latter in terms of technology.
In fiscal Q2 2018, AMD’s graphics revenue rose YoY as lower sales from blockchain were more than offset by strong demand from gaming and data center customers. The end of the crypto boom has led to a fall in AMD’s blockchain sales, making them almost negligible in H2 2018.
Over the last 12 months, AMD saw strong adoption of its Polaris-based Radeon RX 500 and Vega-series GPUs among gamers. It has expanded its Radeon family by bringing Vega to laptops.
AMD is also focusing on software by launching drivers for every major game to optimize it on Radeon GPU. The company is optimizing next-generation games on Radeon GPU by expanding its partnership with major video game publishers like Ubisoft, Capcom, and Rebellion.
Big screens are a major component for a solid gaming experience. AMD has expanded its FreeSync ecosystem with more than 400 FreeSync-enabled monitors and TVs available in the market. The latest addition to this is Samsung (SSNLF), which added AMD’s FreeSync technology to its high-end TVs.
AMD is seeing increasing adoption of its Vega-based Radeon Instinct MI25 GPUs for data centers. NVIDIA dominates the data center GPU market, as its GPUs are easy to deploy thanks to its CUDA software platform. AMD is stepping on NVIDIA’s toes by investing in open software solutions. It is engaging with large cloud customers to develop software that meets their requirements.
On the hardware front, AMD has developed the world’s first 7-nm (nanometer) GPU, which it is currently sampling and plans to launch by the end of 2018. The new 7-nm Radeon Vega GPU will be optimized for AI (artificial intelligence) and machine learning.
Next, we will look at AMD’s Enterprise, Embedded, and Semi-Custom segment.
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