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AMD is in trouble, says analyst

Analysis But we beg to differ
Wed Jul 13 2011, 15:17
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A CHIP ANALYST at JMP Securities has downgraded AMD, alleging that the company's APU and server offerings aren't in sync with the needs of its retail partners and are falling behind the competition, both of which, if true, are damaging for AMD's prospects.

The analyst, Alex Gauna, might be not too popular with the AMD fanbois these days. In a report downgrading the company's rating, the analyst claimed he was surprised to find that OEMs were unsupportive of AMD APUs and that at least one was discontinuing products based on the groundbreaking chip. According to Gauna, Dell - which up until a few years ago was synonymous with "Intel Inside" branding - will drop AMD APU offerings altogether.

By the way, by groundbreaking, we really do mean that. AMD did field the first ever APU, even if its competitor Intel stubbornly refuses to use the term.

The analyst added that, taking into consideration the fact that ARM is gaining momentum with OEMs and Windows 8 is supporting the chip architecture, the low-power APU looks like a stop-gap solution between full-blown PCs and handheld computing.

To put some icing on the cake, Gauna claimed that Intel is ahead of the game in the server department too. He said Intel's recent Xeon E7 refresh has left AMD behind and noted that AMD's server roadmap only goes up to 32nm.

Unfortunately for Gauna, his comments read like a textbook Intel PR reaction and have sparked some irate reader reactions.

So, let's take a closer look at this analyst's claims.

 

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