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AMD To See Sales Increase Sharply In 2H19

A ramp-up in CPU and GPU shipments for notebooks, motherboards and servers will buoy significantly AMD’s sales performance in the second half of 2019, according to sources at PC makers.

AMD’s third-generation Ryzen series CPUs featuring the new Zen 2 architecture, and corresponding X570 chipsets are set to be unveiled at Computex 2019 at the end of May, while AMD’s new server CPUs codenamed Rome will begin shipments in mid-2019. The company’s next-generation Navi series GPUs will also make their debut in the third quarter. All chips will be fabricated on 7nm process.

Thanks to the success with its Ryzen series processors, AMD’s share in the desktop market rose dramatically, while its EPYC server processors also saw a sharp market share gain from 1% in the fourth quarter of 2017 to 3.2% in the fourth quarter of 2018.

AMD expects its first-quarter 2019 revenues to slip 12% sequentially and 24% on year due to seasonality and weakening graphics card shipments. Although the company launched its latest 7nm Radeon VII GPU in February, the product alone was still not sufficient to offset the sharp decline created by the dissipation of the cryptocurrency mining fad.

AMD expects revenues from its semi-customized products to drop on year in the first quarter of 2019, but revenues from Ryzen for desktop, EPYC for server and GPUs for datacenter to all enjoy growths.

Because of Intel’s CPU shortages, Hewlett-Packard (HP) and Lenovo have been placing orders for AMD’s CPUs for their notebooks since the second half of 2018, while Asustek Computer has adopted AMD’s solutions in a couple of its gaming notebooks that have achieved better-than-expected sales. Acer and HP have also been using AMD’s platform for their Chromebooks. With the increasing adoption, AMD is expected to see its share significantly increase in the notebook market.

AMD’s Ryzen 3000 processors featuring the Zen 2 architecture, and X570 chipsets will be the first platform to support the PCIe Gen 4 technology. Because of the platform’s strong price/performance ratio, many motherboard players have increased the shipment proportion of their AMD 500 series-based motherboards, which is expected to boost AMD’s share in the desktop market in the second half.

The X570 chipsets are designed by AMD in house as AMD’s chipset partner ASMedia will not be able to tape out its PCIe Gen 4-related solutions until the end of 2019; however, ASMedia will still be responsible for designing AMD’s chipsets for the mainstream sector.

At the moment, AMD’s profits from the GPU business is mainly contributed by demand from the datacenter market, while Google’s new cloud stream gaming platform Stadia is also adopting AMD’s GPUs for the system.

In additional news, AMD CEO Lisa Su is set to participate in a pre-Computex press conference on May 27 to provide a keynote about the development of the high-performance computing industry.―Digitimes

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