AMD's APU plans failing -

JMP Securities chip analyst Alex Gauna has been donning his sackcloth and ashes to declare doom for AMD.

According to Barrons, Gauna cut his rating on shares of AMD to Market Underperform after claiming the outfit's chips in the "Fusion" family, was fallen flatter than a parachuting stingray which and landed on the track of the Indian Elephant steeplechase.

Gauna said that he had been asking computing retailers and OEMs but representatives are not only unsupportive of the new APU offerings - they are cutting back on them,

If you try and buy an AMD model online at Dell you would be out of luck.  Reviews of the chip family are "sparse and lacklustre," he added.

Investors had been attracted to AMD because there was a belief that its APU offerings could close some of the gap with Intel. However as Intel ramps its Visibly Smart 2nd Generation Core offerings, the reverse is happening.

To make matters worse, with Microsoft's Windows 8 operating system, running on ARM chips, AMD could lose its crown as the primary alternative to Intel.

Gauna predicts that OEMs will pull the life support from AMD, as other ARM-based second source alternatives to Intel emerge with the Windows 8 move expected to emerge around the end of the year.

He said the market share erosion will happen in 2012.

Server chip prospects are not good for AMD, either. He said that Intel's Xeon E7 refresh makes it hard for AMD  to gain any momentum in the near-term. Intel will be selling 22nm products by 2012 while the AMD server roadmap does not go beyond 32nm.

Gauna does not think that the lack of a CEO is making a difference to AMD, but it does indicate why no one is keen to take up the poisoned chalice.

His commens are the opposite of what Forbes is predicting for AMD.