Microsoft’s Windows 10 operating system is driving a lot of downloads, but it’s not necessarily going to generate a huge amount of sales for PC chipmaker Advanced Micro Devices.
Lisa Su, chief executive of Sunnyvale, California-based AMD, said as much in a conference call with analysts. The comment is particularly significant given that AMD is one of the bellwethers for the larger PC ecosystem.
“While we are not anticipating Windows 10 will drive a dramatic near-term PC refresh cycle,” Su said, “the continued adoption of Windows 10, which has already been installed on 110 million PCs to date, provides a great opportunity for AMD over the coming year.” This opportunity is based on steady growth in consumer and commercial PC sales.
AMD makes chips such as processors, graphics, and combo chips that combine computing and graphics in a single chip.
“In the fourth quarter and beyond, our priorities are clear,” Su said. “We must make more progress returning our computing and graphics business to a healthy trajectory.”
Meanwhile, Su said the company is on its way to having its best year for semi-custom chip sales in 2015. Those chips include video game processors for the Sony PlayStation 4 and the Microsoft Xbox One game consoles. She said that the company is on schedule to ship a new semi-custom chip in the second half of 2016.
AMD reported weaker-than-expected earnings for the third quarter.
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