QCOM), Texas Instruments ( TXN) and Broadcom ( BRCM).
Given that the mobile market is a very small value contributor to Intel and the microprocessor giant is finding it difficult to gain share, should AMD really divert some of its resources to pursue this crowded space? AMD still has plenty of room to gain share in core microprocessor segments, and might be better off committing its resources there. With the exception of the desktop market, where AMD has close to 27% share, the company has seen significant declines in its notebook and server processor market shares. AMD has an estimated 13% market share in notebooks; for servers, its market share is about 8%. In the case of servers, Intel has gained ground with its Xeon processors while AMD hasn't done itself any favors with product delays magnifying the loss. We've previously discussed AMD's upside opportunity in server processor market share. Given significant room for growth in both servers and notebooks, maybe it makes sense for AMD to focus on these markets before venturing into microprocessors, particularly at a time when competitor Nvidia is jumping into the fight for microprocessor share. Maybe AMD's management shakeup was the right move in the sense that the company had struggled to gain share in core segments. But given our analysis, it seems that former CEO Dirk Meyer may have been right in his assertion that the mobile market might not present the most lucrative opportunities for AMD. Did AMD make the right move? Let us know your thoughts by providing feedback in the comment box below. You can also drag the trend lines in the charts above to see the impact of various notebook and server market share scenarios on AMD's stock value. You can see the complete $7.73 Trefis price estimate for AMD's stock here. Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.