The company plans to introduce new chips specially targeting tablets under code names Beema and Mullins.
Semiconductor firm AMD plans to focus high end tablets which are priced more than $300, and shun completion with Intel or ARM in sub $100 segment.
The US based company said it will be selective and focus on high margin and high value products unlike Intel which subsidise tablet makers to use its x86 chips through its "contra revenue" programme, according to PC World.
AMD global business units general manager Lisa Su said, "If we miss out on some units in the low end, so be it."
AMD CEO Rory Read said, "This idea of contra revenue is foreign to us."
Currently, the company is supplying chips for tablets which are customised version of the PC chips with enhanced graphics processing capability.
But in future the company plans to bring out new chips specially targeting tablets under code names Beema and Mullins.
The new tablet chips will have new cores which will improve the performance to tablets and lengthen the battery life.
AMD reported 28% increase in year-on-year revenue during the first quarter to $1.4bn, reporting drop of 12% sequentially. It reported an operating income of $49m and $66m in non-GAAP basis.
During first quarter the company reported a net loss of $20m, $0.03 per share and non-GAAP(1) net income of $12m.
Read said that the company continued its momentum by building on the solid foundation set in the second half of 2013, further transforming the company.
"Backed by our powerful x86 processor cores and hands-down best graphics experiences, we achieved 28 percent revenue growth from the year-ago quarter," Rory said.
"We are well positioned to continue to grow profitably as we diversify our business and enable our customers to drive change and win."
Revenue from computing solutions segment dropped 12% year-over-year and 8% sequentially which the company said was mainly due to decreased in client unit shipments.
Graphics and Visual Solutions revenue soared 118% percent year-over-year driven largely by semi-custom SoCs, while its GPU revenue increased year-over-year due to strong demand for the AMD Radeon R7 and R9 family.