Thursday, February 23rd 2023
AMD GPU Sales Not That Far Behind NVIDIA's in Revenue Terms
While AMD Radeon PC discrete GPUs have a lot of catching up to do against NVIDIA GeForce products in terms of market-share, the two companies' quarterly revenue figures paint a very different picture. For Q4 2022, AMD pushed $1.644 billion in GPU products encompassing all its markets, namely the semicustom chips powering Xbox Series X/S and PlayStation 5 consoles; and AMD Radeon products. In the same period, NVIDIA raked in $1.831 billion in revenues from semicustom chips powering Nintendo Switch console, GeForce NOW cloud-gaming service, and NVIDIA GeForce products. In purely revenue terms, AMD is bringing in 89% the revenue of NVIDIA from client graphics IP, which begins to explain how AMD is a major player in this market.
Source:
HXL (Twitter)
59 Comments on AMD GPU Sales Not That Far Behind NVIDIA's in Revenue Terms
AMD has also managed to close the gap with Intel. In 2021, Intel had 5 times higher revenues. In 2022, after $16 billion loss, Intel's revenues are less than 3 times higher than AMD.
Impressive, indeed!
2022: Nvidia ~$26.8 billion, AMD ~$23.6 billion; Intel ~$63 billion
2021: Nvidia ~$26 billion, AMD ~$16 billion; Intel ~$79 billion
Intel = $17.53 Billion
Nvidia = $5.27 Billion
AMD = $5.05 Billion *This represents an over 75% increase from the previous year of approximately $2.5 billion, and for 2020, the R&D budget was under $2 billion.
Up until 2021, AMD had been spending less than half of Nvidia and less than an eighth of Intel on R&D, a budget that had to be split between x86 and graphics and we can assume x86 got the majority. But this shows that AMD, until just 2022, was being outspent by Intel and Nvidia by a huge margin, which makes it all that more impressive that they were able to take the lead from Intel in that time with Ryzen and at least match Nvidia in raster. This huge deficit in R&D spending was the norm for AMD up until 2022 where they were able to massively increase their R&D budget and finally get it in league with Nvidia's after being outspent by a large sum for years. The fact that AMD has finally reached parity with Nvidia makes me think that finally, we will see AMD compete against them on a much fairer playing field after being at a big disadvantage for so long.
Obviously AMD will get nowhere close to the $17+ billion spent by Intel, which although spread across numerous divisions, undoubtedly has more allotted to x86 than AMD. Despite this, AMD's R&D is now better funded than it has ever been in previous years. We've seen what AMD was able to do with an R&D budget a fraction of the size of its competition, so I would imagine that now since they're closer than ever to financial parity in research and development, we might be seeing an even more competitive AMD in the years to come. This is good, since in both x86 and graphics we're in a defacto duopoly (until Intel makes a seriously compelling product gpu) and the best a consumer can hope for in such a situation is a 50%50% split in marketshare and a balance of power to get the most innovation and best prices. AMD still has a ways to go in x86 (especially in one of the most lucrative consumer x86 segments: mobility) and a long, long way to go in graphics, but they'rein a better position to achieve that now than they've ever been.
I do hope it has some way of ensuring one user one entry but I know in my heart that's unlikely.
Explains some stuff, I am sure. Nvidia has paid influencers etc and fudging a poll certainly is not above them, fudging benches never was.
I also agree about the importance of mobility segment. Introducing high-performance Dragon Range SKUs is a step in good direction. We need to see AMD developing mobile chipset with more rich I/O. Currently, Intel's HX and H chipsets are way, way better and more diverse. See below.
I am not happy about the fact that increasing number of laptops have abandoned SATA 2.5 SSDs and opted to offer NVMe drives only. Also, many laptops come only with one or sometimes two NVMe M.2 drives. I'd like to run two NVMe drives in RAID mode should something happen to one drive, and have a third drive for storage.
DIY PCs are no longer profitable; although the NS is one of the best-selling consoles, it still doesn't bring in as much revenue as the Xbox and PS.
Do the figures mentioned above include sales of GPUs for high performance computing? If so, wouldn't that also mean that Nv sales of such GPUs are nowhere near as high as I previously thought.
Steam yeah maybe epic is a better place to poll seeing they have better cheaper games ;)
I'm not sure why I have a steam account anymore frankly.
Please take your Accounting 101 course again!
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LOOK AT THIS TABLE FOR A REFRESHER
www.toucantoco.com/en/blog/net-revenue-how-it-differs-from-gross-revenue-and-net-income