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Upgrade push could be the salvation of long struggling AMD

In business, just like in real life, companies can be a victim of expectations.   Fortunately for chipmaker Intel it handily beat the estimates of Wall Street's top researchers, reporting its best quarter ever.  On Tuesday night after the closing bell Intel reported a Q2 2010 revenue of $10.8B USD, handily topping the $10.25B USD predicted by analysts.

Chipmaker AMD, the David to Intel's Goliath, had some good news of its own on Thursday.  The company posted a net loss for Q2 2010 of only $43M USD, $110M USD less than the loss widely predicted by Wall Street.  AMD reported revenue of $1.65B USD, where analysts had predicted it to pull in only $1.54B USD.  It also posted a promising Non-GAAP earnings were $83M USD.

AMD has benefited from its success in the GPU segment, and, like Intel, by a strong upgrade cycle demand for CPUs.  AMD credits stronger demand for notebook CPUs and GPUs as a major source of its turnaround.  With its latest results, AMD inches closer to finally crawling out of the money pit it has long been languishing in.  In fact, if the current results are any indication, AMD may return to profitability within a quarter or two.  

Ultimately, AMD and Intel are being buoyed up by a strong upgrade push both in the desktop and notebook sector.  A major part of this push is thanks to Windows 7, Microsoft's latest consumer operating system that is earning unanimous praise from reviewers and customers alike.

While some worry about the upgrade craze dying down, it seems likely to continue strong for some time while so many customers still have Windows XP.  Additionally, businesses will likely slowly jump onboard the upgrade train as they look to transition to Windows 7.  If Microsoft can replicate Windows 7's success with Windows 8, the outlook for both Intel and AMD may continue to be just as rosy.



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I guess it's a start...
By Daniel8uk on 7/16/2010 9:54:27 AM , Rating: 1
I've always liked AMD over Intel, Intel have had some nasty practices over the past and if AMD were to go it would just be Intel and then we'd be in a world of shit.

I'm also eyeing up the X6 series, they do look pretty good, I only wish that AMD would use Multi-threading on their chips though. Either way two or three X6 series chips with some good cooling, a little over-clocking and a lot of RAM would make a nice little render farm :D




RE: I guess it's a start...
By twhittet on 7/16/2010 10:07:01 AM , Rating: 2
Since I hate heat and noise, I'm waiting for them to jump on 32nm already.


RE: I guess it's a start...
By Taft12 on 7/16/2010 10:36:22 AM , Rating: 2
Me too, and I wish they would enable the Turbo feature from the X6 CPUs on their 2-4 core offerings. They pulled the planned quad-core CPU that was going to have this feature and that's the one I would have chosen for my next upgrade.


RE: I guess it's a start...
By twhittet on 7/16/2010 11:13:25 AM , Rating: 2
Not sure about their version of Turbo - it's not as good at power management as Intel's current version, correct? Turbo would be great, but only if it's as good or better than how Intel implements it. Which may not be possible until they move to 32nm.


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