AMD Reports Second Quarter 2024 Financial Results, Profits Up 17 Percent YoY

[bonehead123]

Sooooo...to summarize:

Jacket Lady can now proceed with purchasing some new jackets, to go along with her new yatch, 14th beach house and 8th Lambo, and maybe even another LearJet

 

[Abaidor]

With the industry going bananas about AI, killing the two parts of the company that are the most important parts for AI, Xilinx and Radeon, would have been suicidal.
Xilinx is the reason AMD is ready to offer AI capable APUs and Radeon is the reason AMD is seen as a competitor to Nvidia.



Nvidia would have reacted with a price cut or a product at $700, that would have been worst in everything, except in offering somewhat better RT performance and DLSS support. Consumers would rush to buy the Nvidia product because you know, "AMD products are bad and drivers are trash".

"Thank you AMD for forcing Nvidia to lower prices. RTX 40X0 here I comeeeeeeeeeee!!!!!!!!!! Radeons are for pooooooooooor".
This is happening the last 15+ years. For 25+ years in CPUs too.

Maybe for now, but Instinct revenue can skyrocket if AMD starts becoming a REAL competitor to Nvidia's GPUs. The money is flowing in GPUs and CPUs are becoming secondary in servers. That's why Intel decided to reenter the GPU market, they where seeing that focus was moving away from CPUs to GPUs.

Hoping to see an FSR Premium version that uses the NPU in both Intel and AMD CPUs/APUs for better quality. That could be enough to make tech press less of a DLSS promoting army. Unfortunately Ryzen 9000 comes without an NPU, which probably means we will have to wait a few years for that, except if we see a hardware FSR version using some new type of hardware in RDNA4 GPUs.


I am trying to explain this for years to all those saying that AMD needs to price it's products much lower than Nvidia.

Perhaps the terms "much lower" needs to be more clearly defined........pricing their top of the line GPU at $450 to compete with the RTX 4800 is what the market conceives as "value". This is not something nVidia would follow. Of course, this can't happen and be profitable but it demonstrates how lacking their GPUs are perceived by buyers........and to a certain extend they are. Nvidia executes perfrectly business wise.

 

[john_]

Perhaps the terms "much lower" needs to be more clearly defined........pricing their top of the line GPU at $450 to compete with the RTX 4800 is what the market conceives as "value". This is not something nVidia would follow. Of course, this can't happen and be profitable but it demonstrates how lacking their GPUs are perceived by buyers........and to a certain extend they are. Nvidia executes perfrectly business wise.

It doesn't matter how much lower you mean with that "much lower". Nvidia sells with higher profit margins, sells 8 times more and people are willing to pay more to get something that comes with lower specs but has the Nvidia logo on it.

So if AMD was deciding to go bankrupt by selling the 7900XTX for $450, Nvidia could still price the 4080 at $500-$520 and maintain an 80% market share, because people will rush to buy the 4080. While we can speculate that Nvidia "would not follow" AMD in pricing it's card as low as AMD, it would have been at least suicidal to base a company's financial survival on a guess of what the much richer, much larger, much stronger competitor will do. In any case Nvidia can go lower in profit margins than AMD and still make higher profits by selling 8 times more cards. If AMD makes a $60 profit per card for example while selling at $450 and Nvidia makes only $30 per card when selling at $520, the fact that Nvidia will keep selling 8 times more cards, means that Nvidia still wins( 8*30=240>60 ).

And of course let's not forget that Nvidia can easily get more wafers than AMD from TSMC. Even if AMD could try going bankrupt by selling their top card at $450, they wouldn't had enough wafers to fulfill the demand in case Nvidia decides to not lower their prices. So, what will be initially a $450 MSRP price, in a matter of weeks - if not days - will increase to prices closer to Nvidia's equivalent products. The initial positive reaction of the public for the low MSRP price will turn to negative criticism towards AMD for not having enough quantities to keep the prices down, while scalpers and retailers will be having a party.

 

[Visible Noise]

They make more revenue from Epyc than MI300's so i'm not sure what you're talking about

Are you saying Epyc isn’t used in AI systems?

Think before posting.

 

[mkppo]

Are you saying Epyc isn’t used in AI systems?

Think before posting.

Whoa easy there. Though admittedly I didn't really have to think before posting because you were that factually incorrect.

Yes Epyc is also used in AI system deployments, but it's not only AI is it? Therefore your statement of "AI is the only place AMD is making any money" is false and still is.

I can do on about the fact that they were making good money even before this AI boom from Epyc but this should suffice.