AMD might turn around losses on server chips

Beancounters at Forbes have been adding up the figures, and dividing by their shoe size and worked out that AMD will win ground in the server processor market.

Forbes said that server processors constitute around 20 per cent of AMD’s stock price, so losing ground here could be bad for the outfit.

Forbes said that AMD’s market share in server processors was at its peak in 2006, when it was at 25 per cent, thanks to the success of its Opteron processors.

Chipzilla clawed back its lost share by introducing the Xeon processor and releasing upgrades.

Meanwhile AMD was late in its launch of the Barcelona chip in 2008 and things started to go badly.In 2010 the company only managed seven per cent of the server market.

Forbes thinks that AMD is well aware of the problem and will regain some of its lost share with its focus on 8-core and 12-core microprocessors and a new marketing campaign.

“We believe AMD will recapture some of the market as Intel still lacks a 12-core processor. AMD also has a pricing advantage,” the report said.