AMD/ATI to quit discrete GPU business?

Posted on Tuesday, October 31 2006 @ 0:11 CET by Thomas De Maesschalck
An analyst from American Technology Research believes the "new AMD" may eventually quit the discrete graphics chips business:
“After analysis of the options, we believe AMD could divest the discrete GPU business and still achieve the company’s longer term goal to integrate a CPU and GPU onto a single silicon chip,” said Doug Freedman of American Technology Research in a note to clients.

The analyst believes that the market share for ATI Radeon discrete graphics processing units (GPUs) will be limited to the market share of AMD’s own microprocessors, thus, will not be really large.

“The discrete GPU business working from within AMD will be at a disadvantage to Nvidia and other independent GPU suppliers. ‘AMD’ GPUs will be very closely tied to AMD platforms and limited in the amount of traction they will be able to gain on Intel-based systems,” Mr. Freedman claims.
More details at X-bit Labs.

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Re: AMD/ATI to quit discrete GPU business?
by Anonymous on Tuesday, October 31 2006 @ 3:08 CET
Long term sure it's possible. Short term (2yrs or less) this is insane. ATI's market share in that window is not going to harm AMD. ATI has always sold to the Intel market in terms of gpu's. Chipsets could be a big ? but the gpu's are solid.

In reference to GM's this guy needs to stop reading the press releases like they were true. GM's are decaying because of the price war with Intel. That's not exactly rocket science. Where exactly did they dig up this analyst? Probably time to move him to a new market.