AMD predicts PC market stability and revenue growth

President of number two chipmaker says his company will achieve revenue growth despite industry downturn

PC processor company Advanced Micro Devices expects "modest" revenue growth this year, despite a continuing flood of bad news from the industry, AMD's president told journalists in Tokyo on Wednesday.

Hector Ruiz, AMD's president and chief operating officer, made the comments as research firm IDC released new figures predicting that unit shipments of PCs in the US for 2001 will decline for the first time ever over the previous year.

Ruiz remained relatively optimistic about the state of the PC market, saying there is increasingly reason to believe growth will return to normal in the fourth quarter of 2001. In the mean time, he said AMD sees itself gaining market share in PC processors and flash memory products.

Ruiz, who will take control of AMD next year at the retirement of chief executive Jerry Sanders, said AMD gained 17 percent of the global microprocessor market last year, and increased that number to 21 percent in the first quarter of this year. AMD is the second-largest microprocessor manufacturer after Intel.

IDC said that based on new data, it now expects a 6.3 percent decline in PC unit sales for the year to 45.3 million units, versus a previous forecast of 2.2 percent growth. IDC also slashed its worldwide PC sales growth forecast, to an increase of 5.8 percent over year 2000 shipments from a previous forecast of 10.3 percent.

Other analysts see the global PC market declining as much as 15 percent this year.

Reuters contributed to this report.

See Chips Central for the latest on processors and the semiconductor industry.

Have your say instantly, and see what others have said. Click on the TalkBack button and go to the Chips Central forum

Let the editors know what you think in the Mailroom. And read other letters.