backtop


Print 61 comment(s) - last by Tom Kamkari.. on Oct 23 at 2:14 AM


AMD will release its next generation of graphics cards and its first Fusion CPU/GPU onto the market this holiday season.  (Source: PC Mag Blogs)
Company also shares details on its upcoming Fusion platform and tablet plans

On Thursday night, AMD reported a mixed round of earnings.  It reported a non-GAAP quarterly profit of $108M USD widely beating the narrow $2M USD profit margin it posted a year before.  But its GAAP adjusted earnings (which take into account interest, taxes, depreciation and amortization) showed a net loss of $118M USD.  

Revenue increased 16 percent from $1.4B USD a year before to $1.62B USD, but fell slightly short of the average analyst prediction of $1.67B USD.  After years of struggles there was some signs, though, that the chipmaker may finally be preparing to turn the corner.  It reported a 33 percent year-to-year rise in graphics segment sales, showing off its gains over struggling competitor NVIDIA.

Perhaps most promising, as noted by 
AnandTech, AMD's earnings call (audio) Thursday night contained an intriguing disclosure from CEO Dirk Meyer.  Mr. Meyer comments in the call, "We will be launching our second-generation DX11 graphics offerings next week."

That "second-generation" is namely the AMD Radeon 6xxx DirectX 11 GPU series, whose specs reportedly leaked late last month.  The leaked specs sheet shows the redesigned GPU doubling many of the stats (memory bandwidth, Z/Stencil, and pixel rates) of the previous generation.

AMD is apparently very confident that its supply chain will be robust this time around.  Mr. Meyer promises that the cards will be available in time for the holidays and that it plans to ship "hundreds of thousands of units" before the end of the year.

The new series will be the first GPU series from AMD not to bear the ATI brand name, which AMD recently killed off.

If AMD can deliver on this promise, it should mean even more fierce competition for NVIDIA.  NVIDIA was finally able to take a breather, having at last moved its long-delayed Fermi Geforce 400 series out the door this spring, and seeing volumes pick up over the summer.

There was also plenty of interesting news from AMD in the CPU sector.  Mr. Meyer announced, "We look forward to building on this momentum when we begin shipping our first AMD Fusion Accelerated Processor Units later this quarter."

AMD's long-awaited Fusion processor could generate significant buzz among OEMs as it looks to offer a single affordable CPU/GPU solution in a singe-chip package.  AMD lags widely behind Intel in market share (AMD holds around 10-20 percent of the market, while Intel holds 80 to 90 percent), but it may post substantial gains by beating Intel to market with PC-ready system-on-a-chip (SoC) designs.  Intel is also preparing Fusion-like CPU/GPU SoC designs, but its GPU experience lags behind AMD's.

In the earnings call Mr. Meyer, like his competitor Intel, also emphasized tablets would increasingly be a priority for his company.  He says AMD's netbook-geared chips will show up in tablets over the next couple years and that once the market shows greater growth, AMD will "show up with a differentiated offering with great graphics and video technology."

AMD CTO of servers Donald Newell also boldly predicted an end to the core wars, which AMD is currently deep in.  He likened the trend of chipmakers packing more cores on a chip to the clock speed wars of the nineties.  He comments to 
PC World/IDG News, "There will come an end to the core-count wars.  I won't put an exact date on it, but I don't myself expect to see 128 cores on a full-sized server die by the end of this decade."

Mr. Newell says that thermal restrictions, as with with the clock speed wars, will be the key limiting factor.





Comments     Threshold


This article is over a month old, voting and posting comments is disabled

prices
By Samus on 10/15/2010 10:26:11 AM , Rating: 3
Sweet, hopefully this will drop the prices of the current 5700-5800's so I can finally upgrade my aging (and power hungry) 3870x2.

I'd been looking at a GTX460 too. Maybe this will pressure nVidia to drop prices?




RE: prices
By quiksilvr on 10/15/2010 10:50:51 AM , Rating: 1
I'll just come out and say it: ATI saved AMD. Their CPU marketshare was seriously dwindling (still is), but ATI's GPUs are killer competitors in the market today.

Healthy competition is always important to keep the companies on their toes and to keep the consumers happy. Here's hoping AMD/ATI stick around for years to come.


RE: prices
By Bloodknight on 10/15/2010 11:15:41 AM , Rating: 5
Yes and No....
By taking ATI they put themselves in a huge debt...

It was a wise decision future wise (for fusion).

But in a money standpoint.... if you buy something at 100 Millions... and pay (let say) 10% interest rate.... Even if the company give you 20Millions per year... it will take 13 years until you get back in your money... (And that is if the market doesn't change) ...


RE: prices
By lolmuly on 10/15/2010 12:48:14 PM , Rating: 2
amd bought ati for 5.4 billion at the end of 2006, before that ati was earning roughly 2.2 billion per year.

A company that size would never pay 10% on a loan, they probably paid just over inflation IF they actually took out any loans (didn't they stockpile cash for the acquisition?).

say worst case scenario ati's earnings were cut in half at the crash, that would still mean that ati has already earned them 5.5billion

Not sure how taxes and other factors play in there, but if you look at it through my laymen eyes, it looks like ati has already paid for itself.


RE: prices
By lolmuly on 10/15/2010 12:50:39 PM , Rating: 1
quote:
Not sure how taxes and other factors play in there, but if you look at it through my laymen eyes, it looks like ati has already paid for itself.


sorry should that be "my layman eyes" ???


RE: prices
By Fritzr on 10/15/2010 2:08:28 PM , Rating: 1
should be through my layman's eyes :)


RE: prices
By lolmuly on 10/15/2010 3:35:03 PM , Rating: 1
thanks, don't really write that word too often


RE: prices
By WW102 on 10/15/2010 2:13:42 PM , Rating: 2
It wouldnt be uncommon for a company like that to have a WACC of 10%.


RE: prices
By theapparition on 10/15/2010 2:55:14 PM , Rating: 2
Glad you don't run a company anywhere.

quote:
say worst case scenario ati's earnings were cut in half at the crash, that would still mean that ati has already earned them 5.5billion


So what you are saying if you buy a business for $1M, that makes $500k a year, but makes $0 profit, you'll get your 1M back after two years? Ah...no.

Earnings are not profits. Earnings don't mean anything if you aren't making a profit (commonly called GAAP). See the difference? Your example would only have made sense if ATI actually made that much in profit, which it didn't come close to.


RE: prices
By menace on 10/15/10, Rating: -1
RE: prices
By robert5c on 10/15/2010 7:25:31 PM , Rating: 2
really menace...must you so...

no where did he state that 0 profit had anything to do with taxes...

man if companies only had to deal with earnings and taxes, business would be easy, but you see there are also expenses and other sorts of costs/loss that eats your money, dwindling your earnings to 0 profit, maybe even negative.


RE: prices
By fsardis on 10/15/2010 7:29:49 PM , Rating: 2
lol, you beat me to it.

earnings minus running costs, minus new investments, minus taxes = profits.
if your earnings are not enough, then you end up with a negative figure. really, it doesn't take an economics degree to figure out, just a little bit of common sense.


RE: prices
By theapparition on 10/15/10, Rating: -1
RE: prices
By cscpianoman on 10/16/2010 12:33:23 PM , Rating: 5
Sorry, profit /= GAAP. GAAP stands for Generally Accepted Accounting Principles and is the standard in the US that companies adhere to when figuring out finances. Profit is a component of GAAP, but is not GAAP.


RE: prices
By SPOOFE on 10/17/2010 12:12:59 PM , Rating: 2
quote:
So what you are saying if you buy a business for $1M, that makes $500k a year, but makes $0 profit, you'll get your 1M back after two years? Ah...no.

If businesses tended to remain exactly the same after such an acquisition, you'd have a point. But if you buy a business with the intention of making it profitable, and you succeed... well, that would more accurately describe AMD's situation, wouldn't it?


RE: prices
By marraco on 10/17/2010 3:53:00 PM , Rating: 1
Bad accounting.

What matter is the market value of AMD shares.

Bill Gates did not turned one of the most rich man on earth by selling Windows and Office, but because he owned Microsoft shares.

When the government prints money, it goes to Wall Street, (otherwise it would feed the inflation).


RE: prices
By StevoLincolnite on 10/15/2010 12:12:54 PM , Rating: 4
quote:
I'll just come out and say it: ATI saved AMD. Their CPU marketshare was seriously dwindling (still is), but ATI's GPUs are killer competitors in the market today.


I like AMD as the underdog, as a consumer I have benefited greatly from it.
Where else could I get a 6-core processor so cheap that clocks to 4ghz easily enough? (Running a Phenom 2 x6 1090T)

On the flip side, take the Radeon 4850 vs 5850.
The 4850 was half the price of a 5850 when it neared the end of it's life, as such I have found large amounts of value in nVidia's Geforce 460 1gb cards, the price of cards this generation has remained fairly high which is sad to see.

Right now though, pretty much every system I have built lately for friends, family and myself have been based on an AMD chip, the Athlon and Phenom lines offer excellent value for money in my opinion and motherboards are cheap to.
Sometimes you don't even have to upgrade the Ram, as you can get boards which support DDR2, which can cut cost farther.


RE: prices
By Dribble on 10/15/10, Rating: 0
RE: prices
By Taft12 on 10/15/2010 4:09:08 PM , Rating: 5
There would be no Fusion if it weren't for the acquisition of ATI. Those numbers do look bad on paper today, but in this industry, you better be looking forward at all times.


RE: prices
By Reclaimer77 on 10/15/10, Rating: 0
RE: prices
By mino on 10/19/2010 6:09:13 PM , Rating: 3
AMD has been in the red for DECADES.

BUT, they were not in red because of negative cash-flow. The were there because of HEAVY R&D and even heavier capital investment.
Their R&D was and is WAY above their league (size-wise).

And that heavy investment is the sole reason AMD is still in the CPU top league while Cyrix along with many other CPU vendors are loong in the dustbins of history.


RE: prices
By mino on 10/19/2010 6:11:20 PM , Rating: 2
Also, do not mistake profitability with cash flow. They are almost completely independent beasts.


RE: prices
By SPOOFE on 10/17/2010 12:16:12 PM , Rating: 3
quote:
How is that saving AMD?

Because profit is only one indicator of a company's quality as an investment. If they're gaining market share or presence, that may satisfy shareholders even if they make no money or even go deeper into debt.


RE: prices
By Da W on 10/15/2010 2:25:35 PM , Rating: 4
I'll say yes and no too. Having spent over $5 bil. for ATI, they cut tremendously in R&D for their CPU, they almost skipped an entire generation which makes the phenom II run on basicly what is still the AMD64 architecture (with improvements of course). And they had to get rid of their foundry.


RE: prices
By tviceman on 10/15/10, Rating: -1
RE: prices
By kattanna on 10/15/10, Rating: 0
RE: prices
By bug77 on 10/15/2010 12:57:20 PM , Rating: 2
Neah, I wouldn't recommend MSI. Palit has some nice models. And Zotac has some that come with DisplayPort, should you need one. Both offer factory overclocks as well.


RE: prices
By Chaser on 10/15/10, Rating: 0
RE: prices
By Parhel on 10/15/2010 2:46:53 PM , Rating: 2
quote:
I'd go with an EVGA GTX470 Super clocked. Exceeds the 5870 in almost every bench.


Err, not really. Maybe a few specific benchmarks, here or there. But with the recent price drops on the 5870, and AMD's newest coming out next week, that doesn't seem like a very smart buy right now.


RE: prices
By Mojo the Monkey on 10/20/2010 3:21:59 PM , Rating: 2
Word is that the high end will not be coming out for another month or more, though. The 6870 is rumored to be the new equivalent of the 5770, with the upgrade from the 5870 being the 6970.

So the 6870 is expected to perform well in the high-mid range, but not be the flagship card, as the *870 has indicated in the past.


ok now reduce the video card size...
By evolveNow on 10/15/2010 8:20:34 PM , Rating: 2
How many more nvidia and amd/ati cards do I have to buy before they finally realize that they need to reduce the
physical size of the card? I spent over 10 mins the other day trying to plug the power connectors in the back of the card (which is in front of the hard drive cage) because of the cramped space. /end-of-rant




RE: ok now reduce the video card size...
By epobirs on 10/16/2010 2:01:35 AM , Rating: 2
How many more cases that don't meet the standards for card size do you have to buy before you catch on?


RE: ok now reduce the video card size...
By evolveNow on 10/17/2010 12:04:52 AM , Rating: 4
I have a Antec P183 case (http://www.antec.com/Believe_it/product.php?id=MTg... which is well within the recommended "standards" and well above the average case.

My XFX Radeon 5870 is almost a foot long, and the weight puts too much stress on the PCI-X slot and the motherboard so I have had to make a makeshift strap that goes around the vid card and is tied to the top of the case.

Now if you like having over sized vid cards destroying your motherboard then by all means go ahead, but this is a legitimate concern of PC builders and smart ass comments won't make the problem go away.


By FITCamaro on 10/18/2010 9:36:43 PM , Rating: 2
I have a 5970 and its fine. And I have the AC cooler on it too.


Wait one ...
By US56 on 10/16/2010 12:13:51 PM , Rating: 2
As a long time, loyal ATI and AMD customer, these two new cards are something of a disappointment. Using the existing 40 nm process, the power requirements are higher than I'd like to see. Was hoping the 6850 would be analogous to the 4850 which was really the bang for the buck sweet spot of the R700 gen. There is also the issue of when DirectX 11.1 will be forthcoming and if these cards will support it in hardware. There was some talk a year or so back that HD5K cards might be capable of supporting DX 11.1 with a flash upgrade which now seems increasingly unlikely. DX 11.1 has been expected to be released with Windows 7 SP1. Would like to avoid a situation like HD2K which supported DX 10 at a time when DX 10.1 was imminent and there was a lot of discussion at the time about whether it was worth waiting for DX 10.1 when it turned out that HD2k was an interim line that came and went quickly with much better HD3K cards just around the corner. The probable next gen 28 nm GPU should be the more interesting one. In the meantime, HD5700 or HD6700 series, which are allegedly just re-labeled HD5700 cards with minor, possibly only cosmetic changes, should be adequate until things sort out some more.




RE: Wait one ...
By haukionkannel on 10/16/2010 2:48:53 PM , Rating: 2
Well, if DX11.1 will be as popular as DX10.1 was... I would not be too worried about it, or the lack of it.
It all depend on if both big companies (ie AMD and Nvidia) will support it. If they do, it may have some impact in long run, if not it will not be very popular among the programmers.

But, yeah the 28 nm upgrade is much more interesting. The 6xxx series was designed for 32 nm, so 28 nm producs would be more like "it was mean to be", instead this 40nm half breed.
But If this upgrade reduces the production cost to AMD, it will increase their revenues and help in developping those next generation cards!


RE: Wait one ...
By SPOOFE on 10/17/2010 12:33:23 PM , Rating: 2
quote:
Well, if DX11.1 will be as popular as DX10.1 was... I would not be too worried about it, or the lack of it.

Or it could be the next DX9c, which seemed to stick around for an inordinately long time compared to some successors.


RE: Wait one ...
By haukionkannel on 10/17/2010 4:04:12 PM , Rating: 2
Allso true!

But I think that Microsoft is not willing to "stagnate" the situation for as long time as they did with Windows XP and DX9.0c. It will hurt their "money machine"...
... even though it would be better to customers and game developers.


people not tech
By Ben on 10/15/2010 12:24:13 PM , Rating: 5
Personally, I think that Hector Ruiz almost killed AMD.

Dirk Meyer is simply a better choice and that is slowly becoming apparent as time goes on.




RE: people not tech
By Hyperion1400 on 10/18/2010 10:04:14 AM , Rating: 2
Why, oh why, couldn't they ship him off to Siberia like Tony Hayward?

...

Global Foundries, I hear land is cheap out in east Russia! It may be an ideal place for a sprawling new foundry and central headquarters?


By PAPutzback on 10/15/2010 11:05:15 AM , Rating: 1
Those first couple paragraphs are hard and confusing to read.

showing off its gains over competitor struggling competitor NVIDIA.

competitor struggling competitor?

though, that the chipmaker may finally be preparing the corner.

preparing the corner?




By ShaolinSoccer on 10/15/2010 4:11:15 PM , Rating: 1
in no concern?

/facepalm


By SPOOFE on 10/17/2010 12:44:58 PM , Rating: 2
'Cuz typos are really such a surprise after all this time...


Hell Ya!
By Sazabi19 on 10/15/2010 2:00:52 PM , Rating: 2
I have been wanting to upgrade to a DX11 card for a while now but have been waiting for the 6 series so I can see what the clocks are and how this will effect the 5970 price. That is my ideal card, but if the 6970/6870x2(?) is of a comparable price i will go for that instead. I love ATI/AMD, used to use NVIDIA cards and loved them, but the price/performance started getting to me and tried a 3870. Now my 4870x2 is still kicking after a few yrs but it doesn't support DX11. Probably throw it into my brothers rig and retire both of his 3870's. Can't wait for next week now :D




Transcript of the meeting
By justjc on 10/16/2010 3:15:56 AM , Rating: 2
In case some of you would like to read what was said at the AMD Q3 2010 Earnings Call, instead of hearing it @AMD, you can find it transcribed at http://seekingalpha.com/article/230160-advanced-mi...

Other news from the earnings call is that the future processors/APUs are following the plan. Ontario and Zacate, the Brazos platform, will be shipping to PC producers in Q4 and will be seen in products in Q1 2011. Llano will ship early next year and be seen in products H1 2011. And Bulldozer will be running over things sometime in 2011, but not before Llano is out.
More news on these products is promised to come at their next financial analyst day in around 3 weeks.




*smiles*
By Setsunayaki on 10/17/2010 10:30:03 AM , Rating: 2
I like the fact competition exists, but each time people look at ATI, now they are going to look at AMD. Sure, AMD owns ATI, but they will see it as a complete takeover and may side with Nvidia since its an Independent Video Card company compared to ATI.

I own ATI and Nvidia Cards and right now Nvidia has the most amazing integration. Below is a list:

OpenGL 4.1 (goes beyond direct X 11)
OpenGL ES 2.0
CUDA
PhysX
OpenCL integration

The integration between these allows for something good.

Nvidia can actually create any Embedded application or extention to an OS or high graphic industry project (openGL is dominant there) In short although ATI and AMD combined are working on fussion...

Nvidia already has its own version with massive integration already. A single GTX 285 beats a 5870 in OpenCL performance and GPGPU performance.

Don't get me wrong. ATI cards are great for the end-user. Those who only play games and dont care about modding and tweaking. I remember how my ATI cards took me through competitions and then when all this integration started....a lot of problems arose.

Now one needs to have some Physics Integration for the heaviest of games and all of these extra integrated technologies that are heavily multithreaded for games.....

I hope the 6000 series helps in that area. ^_^

My current setup is playing games on Linux + Wine + Nvidia. As long as I break 60 FPS in any game, I dont need windows. Of course I have Windows 7 as my secondary OS for new games.

As long as the product shows promise somewhere it can compete. I used to always buy ATI cards, then I switched to Nvidia because the company eVGA offers a Limited Lifetime warranty on their nvidia cards and covers some overclocking too...and provide their own tools.

Due to this I have protection on $400 - $500 investments.

I just can't rely on buying any product from any brand in any market or industry where one spends massive amounts of money and ends up with a cheap to non-existent warranty.




Poor English
By mtlcan on 10/18/2010 9:25:03 AM , Rating: 2
It has been my observation over and over again on DailyTech: the level of English that is thrown at us on this site is an insult. In addition to comments about the quality of this article posted by others below: $2M USD. It is US$ or USD. Avoid repeating information. "After years of struggles there was some signs": were instead of was.

With all due respect: Jason Mick, you wouldn't get away with sloppy writing like this in print media. Please make an effort!




Waiting...... waiting....
By Blood1 on 10/18/2010 2:49:00 PM , Rating: 2
Really waiting for these to come out. I hope they go on sale this week and not just release official spec's news about them. Checking NewEgg hourly for updates if/when they go on-sale..




Ironic?
By triadone on 10/18/2010 11:20:17 PM , Rating: 2
Wouldn't it be ironic if intel, after having cut nVidia off at the knees by not licensing the Core iX tech to them, had to buy them in order to compete with the AMD Fusion platform?




Nvidia
By Tom Kamkari on 10/23/2010 2:14:56 AM , Rating: 2
I'm a Nvidia fan but I like how ATI has been doing past year, in all fairness they care kicking some arse, I only wish they would fold as good.




By atlmann10 on 10/16/2010 6:48:22 PM , Rating: 1
The thing is I have been a very long time ATI user who never really saw the use on Nvidia card's after the 1650 ATI cards and to some extent even the 900 series cards. Either way they chose to release cards on my birthday which is October 19th, and no one from AMD/ATI has contacted me about my new card yet. I mean come on it is my birthday!




Pretty safe bet...
By HoosierEngineer5 on 10/15/10, Rating: -1
RE: Pretty safe bet...
By Parhel on 10/15/2010 2:41:54 PM , Rating: 3
. . . give or take nine years. :)


RE: Pretty safe bet...
By HoosierEngineer5 on 10/15/10, Rating: -1
RE: Pretty safe bet...
By kingmotley on 10/16/2010 2:05:01 AM , Rating: 2
Umm... Actually year 0 A.D was the first year. The calendar starts at the birth of christ. The whole first year was 0 AD.


RE: Pretty safe bet...
By Hmmmmmmm on 10/16/2010 7:52:05 AM , Rating: 2
Roman numerals had no zero, the first year of the calendar was I, then II, then III, then IV etc....


RE: Pretty safe bet...
By foolsgambit11 on 10/16/2010 5:00:15 PM , Rating: 2
Jesus was (by convention) born on December 25th 1 B.C. (Of course, he was more likely born a few years earlier, and probably not on December 25th.) A week later, it was 1 A.D. Technically, the poster was correct that 2001-2010 is the first decade of the new millenium. However, still technically, a decade is any ten-year period, and in common usage, when you refer to "this decade", you mean all the years with the same ten's digit (i.e., 2000-2009). And I'm sure that's what the man from AMD meant when he said by the end of this decade - 31 December 2019.


RE: Pretty safe bet...
By SPOOFE on 10/17/2010 12:30:18 PM , Rating: 2
quote:
The year 1 was the first year.

Year 1 wasn't year 1 until centuries later.

Get over it, they're just numbers. In context of the above quote it's clear to all but the pedantic that he was trying to describe a significant period of time in the world of computer hardware, not just a few months. :D


RE: Pretty safe bet...
By Chaotic42 on 10/16/2010 10:48:44 AM , Rating: 2
http://www.merriam-webster.com/dictionary/decade

Merriam-Webster disagrees:
The decade of the 1920s runs from January 1, 1920 to December 31, 1929.


RE: Pretty safe bet...
By HoosierEngineer5 on 10/16/2010 11:33:26 AM , Rating: 2
Agreed.

Now, let's vote on the value of Pi. I vote for '3'.


RE: Pretty safe bet...
By Helbore on 10/16/2010 4:52:58 PM , Rating: 3
Colloquially, that would be correct. Mathematically, it is still wonrg.

Don't trust a dictionary to teach you maths!


“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads













botimage
Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki