AMD struggles with laptop OEMs, shift towards Enterprise market

As AMD gears up for the October release of its Instinct MI325X chip, the company is reportedly facing tensions with its laptop OEM partners. According to a report by Tom's Hardware, AMD's focus on the enterprise sector has created friction with its OEMs, leading to poor execution and damaged trust. Analysts have described the situation as being akin to a "Cold War ice age," straining the relationship between AMD and its partners.

The report, citing AC Analysis, highlights the core issue: AMD’s recent strategy of prioritizing enterprise-grade chips over consumer products. This approach has left laptop OEMs feeling sidelined, with complaints of "miscommunication, unfulfilled promises, and poor treatment" surfacing. The situation is reminiscent of a period when Intel, at the height of its dominance, faced similar criticisms from its partners.

AMD relying on data center 

This growing tension coincides with a notable shift in AMD's business focus. Recently, AMD’s CEO, Lisa Su, emphasized the company’s new direction as a “data center-first company,” highlighting that over 50% of its revenue last quarter came from the data center segment. While this shift has benefited AMD's financial performance in the enterprise market, it seems to have come at the cost of its relationship with consumer-focused laptop OEMs.

A separate report from the German tech media outlet ComputerBase supports these claims, noting that AMD continues to struggle with supply chain issues, a longstanding challenge for the company. These supply constraints have contributed to delays in the release of laptops featuring AMD’s highly anticipated Strix Point chips.

Some sources even suggest that these delays and inefficiencies may have cost AMD billions of dollars in missed opportunities with its partners over the years.

AMD latest Point Strix chips

The lukewarm reception of AMD’s Strix Point chips among OEMs further illustrates the fallout from these issues. Despite strong consumer interest, laptop manufacturers have been slow to embrace the new processors. Tom’s Hardware notes that as of now, only three brands—Asus, HP, and MSI—are offering laptops powered by AMD's latest chips.

While Asus has 13 models featuring the AMD Ryzen AI 300 series chip, HP and MSI each have just one model, reflecting the limited adoption of AMD’s newest products in the market.