AMD Hoping to Monetize VR Technology Boom, HBM and Diverse IP Portfolio: FBR Analysts

Advanced Micro Devices (NASDAQ: AMD) recently unveiled their lineup of Radeon R9 300 series (almost of which were rebadges) and the brand new Fury Lineup with the haemorrhage edge HBM technology. Analysts at FBR state that they the visitor is hoping to extensively monetize non merely the upcoming big boom in VR (thanks to occulus rift) just monetize their lead with HBM as well as their various portfolio of IPs. The source of the report in question tin can exist plant hither.

A slide from AMD'south recent Fury Launch. @AMD Public Domain

FBR: Advanced Micro Devices (NASDAQ:AMD) planning to leverage upcoming VR Nail and HBM forth with their IP Portfolio

AMD has a very big portfolio of IP, including the extensive cross licensing agreement with Intel (something that will be at the forefront of deliberation in nearly every major fiscal event in AMD'due south hereafter), which extends to custom and semi custom products. This is one of the obvious branches of AMD's IP monetization. The other matter that AMD is working to become going it their compute side. AMD's  (NASDAQ: AMD) CPUs are outdated in more than ways then one, and the company knows that too (as indicated by the fact that Project Quantum uses an Intel Devil's Canyon Processor). If it could get the performance levels of Zen to a higher place a certain performance per dollar threshold then it could turn its compute department effectually easily. Since Zen is still on the drawing board yet, that will accept to wait till next year.

Their Radeon lineup consists mostly of badges but they have been chasing toll signal value optimization very aggressively and for every Nvidia production you will find a roughly equivalent AMD  (NASDAQ: AMD) product that is usually cheaper. Their R7 series starts around the $150 mark, which is a reasonable entry point for gaming. Then ofcourse, there is the Fury lineup. The Fury lineup has HBM technology - which is the bleeding edge of retention standards with one caveat: Its limited to 4GB. While early reports are very heartening, the full effect of this versus rival Nvidia products remains to exist seen. The visitor has perhaps less than a years worth of pb earlier Nvidia rolls out Pascal with HBM2 - and so the time frame to monetize the HBM advantage is now.

Finally, the report mentions the really interesting thing (in my opinion): AMD and independent analysts are expecting a boom in VR Tech this year. The reason for that is the heavily predictable launch of the Oculus Rift consumer sample (Crescent Bay). With dual 1080p screens, AMD correctly anticipates an upgrade cycle and with upgrade cycles come up GPU sales. AMD'due south (NASDAQ: AMD) Liquid VR applied science is very correctly poised to leverage this upgrade cycle and make the most while the metallic is nevertheless hot. The numbers given by FBR are as follows. They estimate about five Million Occulus Rift customers in the get-go (and biggest) adoption wave and if on avg l% of them upgrade their GPUs, it would bring an average ASP of $400. If the VR Boom brings in roughly $ane Billion in incremental GPU sales and going with the current market place share of AMD, the visitor even captures one tertiary the sales, thats over 300 Million dollars in incremental revenue in Q1 2022. Needless to say, 2022 could be the year that makes it for the visitor if information technology plays its cards right.

Source: https://wccftech.com/amd-monetize-vr-technology-boom-hbm-ip-portfolio/

Posted by: brownthowenty.blogspot.com

Share this post