![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Wednesday, January 08, 2014 1:46:08 PM
The much awaited Mac Pro from Apple is powered by AMD's FirePro™ D300, D500 and D700. The fact that Apple preferred AMD for the graphics solutions for MacPro is in itself an indication of AMD's highly differentiated graphics capabilities. FirePro will provide around 6GB of VRAM, 2048 processing streams per GPU and 7 teraflops of computing capabilities; twice the performance of previous Mac Pro.
(click to enlarge)
The AMD FirePro™ D300, D500 and D700 professional GPUs offer exceptional computing power and reliability for creativity and productivity in a wide range of applications. With industry-adopted OpenCL (Open Computing Language) support, Mac Pro users will have the ability to seamlessly edit full-resolution 4K video and simultaneously render effects in the background, and still have enough performance to power up to three high-resolution 4K displays.
The distinguishing feature of this graphics card is the GCN architecture and OpenCL support. The performance, image quality and efficiency improvements are a result of the GCN architecture."We really enjoyed working with AMD to maximize MARI's performance on the new Mac Pro. We've seen some of the best performance out of the box from MARI with the dual FirePro GPUs in the Mac Pro" said Jack Greasley, MARI Product Manager at The Foundry. AMD's increasing competitive strength in graphics will drive the future growth of the company.
The deal with Apple is expected to boost AMD's share in the professional graphics segment. Digitimes estimates that the market share of the company in professional graphics, currently at around 21%, will increase to 30%. This expected increase is because of the favorable demand conditions of Apple Mac Pro. "Demand for the all new Mac Pro is great and it will take time before supply catches up with demand" an Apple spokesman said. The postponement of shipment dates to February is an indication that the demand for Mac Pro is fairly high. Hence, the demand for Mac Pro will supplement AMD's revenue as well.
Estimates
Following are the estimates of the market that can be captured by AMD as a result of this development.
Assumptions
Growth rate of professional graphics is in line with the growth rate of work stations.
The estimated CAGR is an accurate predictor of the future demand over a 3 year horizon.
The model estimates that the company will achieve an additional $183 million in revenues from the Apple deal. The profit margin will also increase as professional graphics margins are higher than those of consumer graphics. The growth of professional graphics is estimated by using the CAGR of work stations, discounted by 25% to reflect the sluggish growth of servers in 2012. Overall, the Apple deal is expected to bring higher margins and revenue growth towards the company.
Conclusion
AMD is proving to be successful in the graphics business. The success is derived from consoles, differentiated server graphics and now the Mac Pro. Furthermore, AMD's computing and graphics solutions will also be featured in the Steam Machine by iBuyPower. The identifiable causes for this success are the GCN architecture and HSA technology. The bottom line is that AMD will continue to grow in the graphics segment thanks to GCN, which resulted in the contract wins with Apple and console developers.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Equity Flux is a team of analysts. This article was written by our Technology analyst. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.
Recent AMD News
- Honeywell Acquires CAES Systems for $1.9 Billion, Sarepta Therapeutics Surges 34%, Gilead Continues Gains • IH Market News • 06/21/2024 12:00:38 PM
- Trump Media Resells Stocks and Warrants; KB Home Exceeds Q2 Expectations, and More News • IH Market News • 06/20/2024 10:55:11 AM
- AMD to Power AI-Based Smart Parking Solution for Sun Singapore, the Country’s Largest Provider of Smart Parking Services • GlobeNewswire Inc. • 06/19/2024 01:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:18:09 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:12:29 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/14/2024 08:03:45 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 08:14:12 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:34:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/11/2024 09:40:41 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/10/2024 09:22:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:16:19 PM
- AMD to Present at the UBS Women in Tech Summit • GlobeNewswire Inc. • 06/10/2024 01:15:00 PM
- Apple Showcases AI at WWDC 2024, Nvidia Stock Split Starts Today, and More News • IH Market News • 06/10/2024 11:29:44 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:16:25 PM
- AMD to Present at the Nasdaq London Investor Conference • GlobeNewswire Inc. • 06/06/2024 08:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/06/2024 08:11:40 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/05/2024 08:27:23 PM
- Economic Worries May Lead To Weakness On Wall Street • IH Market News • 06/04/2024 01:10:54 PM
- AMD Unveils Next-Gen “Zen 5” Ryzen Processors to Power Advanced AI Experiences • GlobeNewswire Inc. • 06/03/2024 03:01:00 AM
- AMD Accelerates Pace of Data Center AI Innovation and Leadership with Expanded AMD Instinct GPU Roadmap • GlobeNewswire Inc. • 06/03/2024 03:00:00 AM
- AMD Extends AI and High-Performance Leadership in Data Center and PCs with New AMD Instinct, Ryzen and EPYC Processors at Computex 2024 • GlobeNewswire Inc. • 06/03/2024 02:59:00 AM
- DJT Stock Falls 6% Post-Trump Conviction; UBS Restructures Senior Management for CEO Succession and More News • IH Market News • 05/31/2024 11:54:10 AM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/30/2024 08:12:39 PM
- AMD Chair and Chief Executive Officer Dr. Lisa Su to Deliver the Opening Keynote at Computex 2024 • GlobeNewswire Inc. • 05/28/2024 09:22:41 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/23/2024 09:44:14 PM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM