AMD Investors Eye Virtual Reality, Gaming Capabilities – Market Realist

AMDs 2017 Product Roadmap Threatens Intel, Nvidia PART 1 OF 17

Advanced Micro Devices (AMD) has generated some talk with its new product launches, strong growth in its stock price, and a comeback in the high-end chip market. This turnaround happened under the leadership of AMDs president and chief executive officer, Lisa Su.

Advanced Micro Devices is the only company that offers both CPUs (central processing units) and GPUs (graphics processing units) and that has both ARM and x86 CPU architecture. This broad portfolio was once its disadvantage.

AMDs rivals Intel (INTC) in the CPU market and Nvidia (NVDA) in the GPU market have strong cash reserves to develop advanced products in their respective markets. However, AMDs limited cash was scattered across a broad portfolio. Advanced Micro Devices is turning this disadvantage to an advantage by tapping high-growth markets and developing integrated solutions.

Advanced Micro Devices (AMD) is focusing on the fast-growing markets of gaming, data center, and virtual reality. These three markets present a $53 billion opportunity for AMD.

Within the gaming market, Advanced Micro Devices is looking to offer its Vega GPUs to gaming enthusiasts and its Polaris GPUs to mainstream gamers. AMD would also power Microsofts (MSFT) new Xbox Scorpio and Sonys new PlayStation 4.5 gaming consoles with its APUs (application processing units). With the advent of VR (virtual reality) in gaming, AMD looks to develop advanced VR headsets.

After seeing the success of Nvidias GPUs in the data center market, Advanced Micro Devices also entered in this space by supplying GPUs to Alibaba (BABA) and Googles (GOOG) hyperscale data centers. AMD is also looking to compete with Intel in the server space with its Naples CPU.

Advanced Micro Devices (AMD) is looking to bring VR closer to reality, which would require high-end graphics, memory, and high processing power. So, the company is developing the Raven Ridge APU that would combine the Ryzen CPU and the Vega GPU. AMDrecently acquired wireless VR chip manufacturer Nitero to get rid of the wires attached to the VR headset.With all these efforts, AMD aims to become a leader in the VR space.

AMD is targetingall its research and development efforts on the above three markets. In this series, well look at the companys end markets and its efforts in each of these markets.

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AMD Investors Eye Virtual Reality, Gaming Capabilities - Market Realist