A refreshing change
Analysts have come away from a recent AMD investor meeting apparently impressed with the firm's ongoing efforts with platform development, manufacturing costs, progress in graphics and the potential to gain share in the notebook segment.
The meeting, attended by AMD CEO, Dirk Meyer, apparently boosted investors' confidence in AMD after a series of crippling quarterly losses - a trend that was already underway, if AMD's recent share price movements are anything to go by.
FTN Midwest research wrote in a report that the meeting and follow-up discussions with AMD and its industry contacts had buttressed its view on AMD's future prospects, especially with regard to better execution, gross margin expansion, and market share gains in notebook and graphics. FTN analysts also felt confident enough to issue a ‘BUY' rating for AMD stock.
AMD management told investors the firm would be playing a much more significant role in the 1P and 2P server markets with the ramp of Istanbul, as well as with new server chipsets and the debut of 12-core CPUs in 2010.
While the ramping of Istanbul can certainly do no harm, the real boost to the firm should come with the launch of the aptly named Magny-Cours; AMD's 12-core, 4-memory channel wonder in 1Q10.
Investors were also excited by AMD's new line-up of discrete GPUs at 40nm - set to launch soon - which many believe will wrench further market share from Nvidia as OEMs and AIBs choose red over green.
According to reports, the launch is still on track and the GPUs should be available in good volume, avoiding the problems of previous launches where the products dribbled rather than pumped out.