AMD Trims Q3 Forecast, $1 Billion Missing, Client Processor Revenue down 40%, Halved Quarter-over-Quarter

[R0H1T]

It's more useful for PCIe based (NVMe) storage, but even there it's not that useful outside of the 0.1% of users out there! There is one more thing that people here are ignoring ~ the SSD prices are tanking & with high end PCIe 4.0 or PCIe 5.0 drives many of these companies can continue selling around the same or even lower prices on PCIe 3.0 drives. Basically these drives can subsidize the much higher volume but lower margin products. Now admittedly they'll also cut production but the early adopter tax helps the plebs here

 

[ARF]

PCIe 5.0 SSDs do not exist at idealo.de. 1 TB; PCIe 4.0 x4 SSD-Festplatte (2022) Preisvergleich | Günstig bei idealo kaufen

But here are pretty decent PCIe 4.0 drives that should last in the next 10 years or more.

 

[wheresmycar]

......Corporations very obviously need to check their greed, but they also need to start designing more cost-optimized products and stop chasing performance in a way that throws all cost considerations to the wind, as we've been seeing for the past couple of generations now.....

DAMN RIGHT!!!

I'm of the same opinion and have been for a while... although you might disagree with the following: i'm over the mooon seeing AMD being hit hard in the revenue department but for the joy to make sense it has to apply to both Intel/Nvidia too, otherwise it sucks! All these hardware throttlers pinching our hard earned dosh need a slap in the face. I've been waiting for a long time for these tech giants to feel the ripples turning into waves with buyer despondency. NVIDIA is always 1st on that list but it seems the pocket-rich continue to grease that self-indulgence war engine.

With power consumption rapidly increasing and small pockets of performance uptick per each generation (gaming), it was obvious these companies were dead set on winning the performance crown at the helm of anything/everything. Like all mightier-than-thou empires, the empirical demise (ok ok overly dramatic) .......ffs, at this point i dont even know where im going with this lol.... erm, in short let them run themselves into the ground i suppose... if its helps lowering prices, introducing less useless embellished feature boards and delivering cost-effective products within the buyers means, i'm all for it!!

 

[lexluthermiester]

True but some financial analysts are claiming that AMD is likely to have made a loss for Q3 2022. There is a big difference between loosing revenue and remaining profitable, and less revenue leading to losses.

It might be worth noting that Intel made a loss for Q2 2022, and they will be reporting on Q3 2022 on 27 October. AMD detailed numbers for the quarter come out on 1 November. Watch this space, I guess.

Regardless, this is a situation indicative of the general economy, not the futures outlook for the company.

 

[Tech Ninja]

Currently the global economic crisis has only impacted consumers. It will hit cloud, server and gaming as well. Look at Nvidia results.

 

[Valantar]

I really don't understand what they are thinking. The market is not ready for PCIe 5.0.
I will never put so large cooling on an SSD. It is stupid and underengineered:

View attachment 264710
ASRock Unveils Blazing M.2 PCIe Gen 5 SSD Cooler With Active Fan Heatsink, Compatible With Z790, X670E & B650 Motherboards (wccftech.com)

The thing is, it's not even down to them being underengineered - it's just a form of performance that isn't compatible with consumer workloads, as consumer workloads generally aren't massively sequential. And NAND flash just doesn't have the random performance to even saturate a 3.0x4 interface without a ton of channels - more than you can fit on an m.2 drive.

And then there's the workloads - say you're loading into a game. Even if you're filling the entire VRAM of an RTX 4090 with assets directly from your SSD, that's, what three seconds of peak sequential read with a PCIe 4.0 drive? Or six seconds with a 3.0 drive, or 1.5 seconds with a 5.0 drive. The point being: who cares about those differences? Of course, game loads today are nowhere near saturating even a 3.0 bus, which DirectStorage will hopefully improve upon. But beyond that, who cares? Differences will be negligible anyhow - no game will require you to be streaming in more than 3.5GB/s of assets at any point in the foreseeable future, so anything above PCIe 3.0 will at best cut loading times by a second or two. I'm very much looking forward to DS being widely adopted, but I don't see it making PCIe 3.0 drives obsolete in any way.

The answer is future-proofing. People are willing to buy motherboards loaded with features they cannot currently use because they are planning to keep the boards for some time, maybe five years. For an AMD 600 series board that could well embrace Zen 4, Zen 5 and even Zen 6. BIOS updates might be necessary but not a new board. Who's to say where either PCI-E 5 graphics cards or M.2 NVME drives will be in say three years time. The alternative is to buy lesser spec motherboards more frequently but that's probably more typical of Intel buyers.

The thing is, there's no foreseeable future that isn't already covered by PCIe 4.0 (and arguably even 3.0) for consumers. PCIe 5.0 is very useful to enterprise and HPC, but consumers just don't run workloads where those types of drive speeds (or capacities to match the speeds) are relevant, and NAND isn't fast enough in random workloads for that to change.

 

[Wirko]

DAMN RIGHT!!!

I'm of the same opinion and have been for a while... although you might disagree with the following: i'm over the mooon seeing AMD being hit hard in the revenue department but for the joy to make sense it has to apply to both Intel/Nvidia too, otherwise it sucks! All these hardware throttlers pinching our hard earned dosh need a slap in the face. I've been waiting for a long time for these tech giants to feel the ripples turning into waves with buyer despondency. NVIDIA is always 1st on that list but it seems the pocket-rich continue to grease that self-indulgence war engine.

With power consumption rapidly increasing and small pockets of performance uptick per each generation (gaming), it was obvious these companies were dead set on winning the performance crown at the helm of anything/everything. Like all mightier-than-thou empires, the empirical demise (ok ok overly dramatic) .......ffs, at this point i dont even know where im going with this lol.... erm, in short let them run themselves into the ground i suppose... if its helps lowering prices, introducing less useless embellished feature boards and delivering cost-effective products within the buyers means, i'm all for it!!

♕
KEEP
CALM
AND
BUY
LESS OFTEN​

 

[lexluthermiester]

♕
KEEP
CALM
AND
BUY
AS YOU NORMALLY WOULD​

I offer a slight alteration.

 

[R0H1T]

Look at Nvidia results.

What results? Did they also project an earnings meltdown/miss any time recently?

 

[crazyeyesreaper]

Su was asked ~1Q22, doing the worst scalping/mining frenzy in our history - "how is AMD" - her response: "*outstanding* year for AMD with record annual revenue and profitability." Yeah, she had stated that doing a time for many consumers were being gouged by scalpers, hunted by miners, and/or suffering from COVID lockdowns. But, Su thought it was still all "outstanding" even when she knew that many consumers were struggling and hurting.

AMD Crushes Earnings With Best Year Ever Fueled By Big Data Center, Zen 3 And Radeon Sales

AMD capped off a record year with $4.8 billion in revenue during the fourth quarter, which pushed its full-year earnings to $16.4 billion.

www.google.com

Well, there is a happy ending after all, and Su is now concerned.

Reap what you sow!

Keep in mind as a publicly traded company they are literally required by law to put shareholder value first. Even if Su knows its scalping / bad / etc it doesn't really matter because if shes not all in for that to make profits for shareholders she will be seen as a failure and it damages the companies reputation. That is capitalism in a nut shell after all. The most profit at the expense of everything else. It applies to all companies.

 

[R0H1T]

Keep in mind as a publicly traded company they are literally required by law to put shareholder value first.

Actually they're not, I posted this a while back but there's no legal/regulatory mandate for that.

That is capitalism in a nut shell after all. The most profit at the expense of everything else. It applies to all companies.

Yes greed, except it all applies to all human with varying degrees.

 

[ARF]

Keep in mind as a publicly traded company they are literally required by law to put shareholder value first. Even if Su knows its scalping / bad / etc it doesn't really matter because if shes not all in for that to make profits for shareholders she will be seen as a failure and it damages the companies reputation. That is capitalism in a nut shell after all. The most profit at the expense of everything else. It applies to all companies.

lol, without a deep analysis and actually being able to prove your point, it's just speculation on your part.
Someone else can say that scalping is not only bad but it damages the company reputation because eventually it will lead to lower sales and less value for the shareholders.
You simply don't know, and make wrong decisions based on some empty assumptions.

The truth being told - the shareholder doesn't care about your money, it's more about a psychological damage on the customers and control.
It's like two people define the pricings and these pricings are random, not related to any physical world observation.

 

[crazyeyesreaper]

lol, without a deep analysis and actually being able to prove your point, it's just speculation on your part.
Someone else can say that scalping is not only bad but it damages the company reputation because eventually it will lead to lower sales and less value for the shareholders.
You simply don't know, and make wrong decisions based on some empty assumptions.

The truth being told - the shareholder doesn't care about your money, it's more about a psychological damage on the customers and control.
It's like two people define the pricings and these pricings are random, not related to any physical world observation.

You being mad because there scalping has no impact on AMD from an investors point of view. I owned stock in AMD sold it at its peak. Fact is by federal law they have to put shareholders first. Obviously consumer sentiment matters but if they are making mass profits. Shareholders are happy, shareholders being happy = Su is seen a success. The days of AMD being an underdog are as of the last few years is over. Essentially any consumer backlash at the moment is considered trivial. They can get away with this because there is little competition. CPU side for x86 / x64 you have Intel / AMD on the GPU front you have NVIDIA / AMD. If you need a consumer PC and you need a CPU and a Graphics card you basically have two choices. In the grand scheme of things if AMD is competitive on both fronts if all companies are price gouging making record profits. The fact is if AMD did not do that they would then need to deal with a lawsuit brought forward by shareholders. That is literally how it works. To simplify it your damned if you do and damned if you don't but made consumers= minimal compared to mad shareholders. Just an FYI but due to a lack of competition any consumer negativity will have little impact. If Intel isn't competitive your buying an inferior product. If you wont buy AMD GPUs your other option is NVIDIA. Who controls an even greater amount of pricing power. Lol its just markets and business 101.

 

[wheresmycar]

♕
KEEP
CALM
AND
BUY
LESS OFTEN​

that just went though me like a bad curry

 

[Wirko]

Keep in mind as a publicly traded company they are literally required by law to put shareholder value first. Even if Su knows its scalping / bad / etc it doesn't really matter because if shes not all in for that to make profits for shareholders she will be seen as a failure and it damages the companies reputation. That is capitalism in a nut shell after all. The most profit at the expense of everything else. It applies to all companies.

How can one legally prove that the effect of a certain business decision was less than maximum profit? Business decisions are things like hiring or firing some engineers, raising or lowering product prices, investing more or less in this or that and so on.

 

[ARF]

You being mad because there scalping has no impact on AMD from an investors point of view. I owned stock in AMD sold it at its peak. Fact is by federal law they have to put shareholders first. Obviously consumer sentiment matters but if they are making mass profits. Shareholders are happy, shareholders being happy = Su is seen a success. The days of AMD being an underdog are as of the last few years is over. Essentially any consumer backlash at the moment is considered trivial. They can get away with this because there is little competition. CPU side for x86 / x64 you have Intel / AMD on the GPU front you have NVIDIA / AMD. If you need a consumer PC and you need a CPU and a Graphics card you basically have two choices. In the grand scheme of things if AMD is competitive on both fronts if all companies are price gouging making record profits. The fact is if AMD did not do that they would then need to deal with a lawsuit brought forward by shareholders. That is literally how it works. To simplify it your damned if you do and damned if you don't but made consumers= minimal compared to mad shareholders. Just an FYI but due to a lack of competition any consumer negativity will have little impact. If Intel isn't competitive your buying an inferior product. If you wont buy AMD GPUs your other option is NVIDIA. Who controls an even greater amount of pricing power. Lol its just markets and business 101.

How exactly do you benefit from AMD been up, running and well? Do you receive any dividends? Or you simply own the shares and the only thing you can do with them is to buy more or sell the ones you have?
A fact is that AMD is losing value, the share price drops, and the company loses money as of now.

Also, there is a third player in the graphics market - Intel.

 

[crazyeyesreaper]

How exactly do you benefit from AMD been up, running and well? Do you receive any dividends? Or you simply own the shares and the only thing you can do with them is to buy more or sell the ones you have?
A fact is that AMD is losing value, the share price drops, and the company loses money as of now.

Also, there is a third player in the graphics market - Intel.

Intel isn't competitive and wont be for sometime. They can't get there first product launch out on time or even reach proper competitive performance in numerous situations. Do I expect that to improve sure. But they are just now launching the Arc lineup and NVIDIA / AMD are about to leap frog them by a sizeable amount. And I bought low and sold high. Making a tidy profit. So when I bought low during pandemic, the price scalping and cash lining AMDs pockets made me a happy investor. Pretty simple really. Sure as a consumer I didn't like the insane prices but. Ill take the good and the bad so to speak.

eventually it will sort itself out but companies do shady shit and consumer sentiment / outrage is lackluster and quickly fades as time in tech and the shit Intel / NVIDIA / and numerous other brands have pulled over the years.

 

[Valantar]

Actually they're not, I posted this a while back but there's no legal/regulatory mandate for that.

That is simply not true. No, there is no law explicitly requiring them to do so, however current US legal practice and precedent dictates that shareholders can successfully sue for significant damages if company leadership doesn't operate in a way that prioritizes short-term profits and the accompanying shareholder profits.

Yes greed, except it all applies to all human with varying degrees.

What you're describing is this thing called culture, and it's rather variable. It's entirely possible to not be greedy.

 

[medi01]

I wonder how much of this is caused by people like me going from excited about new product, to, looking at the prices and saying "no, thank you".

YoY figures are quite impressive though.

 

[r9]

Pries are up but the revenue is down

 

[Shatun_Bear]

I'm a big AMD fan but their stock price has been massively inflated for years at this point. Nvidia's is as well as most of the tech sector. But AMD stands out to me as they just don't make nearly as much profit as who they're competing against. Worrying for a long term outlook. Up until last year their quarterly profits were quite pathetic for such a big brand in tech. I saw one quarter they made a profit of something like $125m....Intel were bagging about $5bn....so yeah, margins are still too low, volume is still too low (to truly compete against Intel).

The whole market is going to crash but it'll be a relatively 'slow' crash compared to the last one. If you somehow held on to your AMD stock until now, you should know what to do.

 

[medi01]

With the brunt of the Pandemic over with and people going back to work and the lockdowns relaxing and fears of the world economy going to hell it's not surprising to see a reduction in demand for electronics considered non-essentials.

I don't see how that explains anything, when graphics revenue is up YoY (despite cryptocalipsis)..

The cheapest AM5 CPU, which is only 6 cores, starts at 360 Euro were I live.
8 core 480, 12 core 670, 16 core 850.

Plus more expensive mainboard and RAM. So what gives?

NVIDIA was two-years-ago. AMD have not / cannot and will not, ever

Hilarious to read that at times when AMD gross margins are bigger than NVs.
(50%, down from 56% vs 46% down from 66% at NV)

 

[Fluffmeister]

Keep trimming, everyone wants a bargain Lisa.

 

[Tsukiyomi91]

everyone is suffering because of their incompetence and complacency. Good. Let's see these corpo rats squeal even louder when their "feeders" (aka investors and consumers) stop giving them "food".

 

[medi01]

AM4 platform + 5800X3D (which for majority of AMD users means buying just CPU) is just way too good for insane 7000 series investment to make sense. It is what, around $1k for mobo+CPU+RAM+cooler and for what gains?

suffering because of their incompetence and complacency

Something was messed up in regards of CPU platform specifically.

GPU revenues are up YoY despite crypto-bazinga bust.