I think their CPU division is dragging them down right now. Their GPUs are very competitive.
Their CPU division has been dragging AMD down since Bulldozer launched; many many months.
AMD's problem is one of perception. Kepler is perceived as a much better deal. AMD bungled the Tahiti launch imo and there is no way to fix it any longer. They lost this round in the public eye and they did not know how to get it back while it was still salvageable.
Whoever is directing AMD's strategy is lost for this year.