AMD has released its latest projections during a presentation at the Credit Suisse 18th Annual Technology Conference predicting that half of their profit margins will come from sectors outside the PC market in 2015.
According to Kitguru, AMD's Chief Financial Officer, Devinder Kumar, said "Our next target point is by the time we get to the end of 2015 to have at least 50 percent of our business coming from the non-PC, non-traditional sector, and then we will see what happens after that."
As shown below, AMD is already on course to reach a 40% non-PC share, an increase of approximately 10% from last year. The company's Q3 earnings came at $1.43 billion, of which $781 million belong to their computing and graphics business. The remaining $648 million (~45%) came from enterprise, embedded and semi-custom SoC business, that is, Opteron server processors and chips used by past and current generation consoles that utilize x86 APUs AMD provides.
AMD has been struggling financially for quite some time and expanding to growing markets seems like a sensible business decision. The PC market, AMD's bread and butter for decades, is expected to shrink 6% year-on-year until 2018 according to IDC.
On top of that, the company has failed to match Intel for several chip generations in sheer performance and sales for desktop CPUs, while remaining fiercely competitive in the GPU gaming market, which usually translates in slim operating margins.