Why Advanced Micro Devices, Inc. (AMD) Could Turn Around

With a low switching cost and practically no competition for a few months, gamers will (again) feel compelled to buy AMD powered GPUs. But that’s not the end of it.

Reason No. 3

An introduction of GDDR6 will also allow AMD to further extend its lead against Intel Corporation (NASDAQ:INTC)’s integrated graphics. Intel Corporation (NASDAQ:INTC) is a vertically integrated company, and develops most of its technology on its own. But GDDR6 standards are being developed by AMD, and Intel will have to model it’s upcoming Broadwell processors based on AMD’s memory standards. This cross platform adoption would certainly take time to perfect, which should give Advanced Micro Devices, Inc. (NYSE:AMD) another headstart against its fiercest rival.

Besides that, Intel Corporation (NASDAQ:INTC) will most certainly have to remodel its die (14nm), to accommodate the new memory controllers. This could lead to roadblocks, and even trade-offs between CPU performance boost and GPU performance boost. But since AMD is developing GDDR6 standards around its own platform, it will most probably be able to pack in a sizeable processing and (integrated) graphical performance boost compared to its previous generation of processors.

But then again, one cannot estimate the financial benefits here. AMD is coming out ahead, but the early adoption of GDDR6 will depend on its performance gains at low voltages.

Final words

I am not an AMD fanboy and have never owned any Advanced Micro Devices, Inc. (NYSE:AMD) powered product in my life. But I’m inclined to say that AMD could be staging its turnaround. AMD’s Trinity is already faster than Intel’s Ivybridge (graphics wise), and its venture into the next gen memory standards, could further extend its lead. Its proactive approach in the field gaming consoles and GDDR6 memory, seem to be turning it into a well rounded company, and I believe that it will benefit AMD over the next couple of years.

The article 3 Reasons Why AMD Could Turn Around originally appeared on Fool.com and is written by Piyush Arora.

Piyush Arora has no position in any stocks mentioned. The Motley Fool recommends Intel and NVIDIA. The Motley Fool owns shares of Intel. Piyush is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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