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AMD is also hoping to offset the blow it's taking in the traditional PC space with new growth in the data center and server markets. Specifically, the chip maker is seeking shelter within the dense cloud market, where it can apply some of the new server fabric technologies it's gaining through its $334 million acquisition of microserver vendor SeaMicro.
In addition, AMD hopes to find sources of growth in new embedded markets, such as communications, industrial and gaming. AMD's Read said he expects the company's low-power APUs and graphics IP to propel AMD to the top of these markets over the next year.
"Our semi-custom APUs already have a number of confidential, high-volume design wins in place," Read said. "We expect our embedded business will comprise approximately 20 percent of our quarterly revenue by the fourth quarter of 2013, up from 5 percent today."
AMD isn't the only chip maker taking a hit as PC sales continue to slip; Intel, AMD's top rival, reported flat year-over-year earnings earlier this week and said it expects to face continued challenges into the fourth quarter.
AMD, similarly, said it expects the lower-than-usual demand for PCs to continue.
"While we look forward to the introduction of [Windows 8], the fourth quarter will continue to be challenging," Read said. "And we do not expect the PC market conditions to improve for several quarters."