AMD Share Price Falls ~28% via Weak GPU Sales; Revenue Share from GPUs Only 30%

[bug]

Thanks AMD for buying ATi and then destroying them.

As I've posted above, the GPU division kept the CPU division afloat during Bulldozer days, now the tables have turned.
And while it's true buying ATI cost AMD quite a few pennies, AMD's really bad move was selling the Imageon division to Qualcomm. That would have raked in a lot more cash, but we don't know if AMD could have survived without selling at that point.

 

[Vayra86]

Ok, so GPU business is down because the crypto craze is over.
But wasn't AMD making tons of cash since they stopped competing at the high end, because money's at the mid segment?

MHM. That is just a fairy tale AMD wanted to believe and let its fans believe for lack of a better story. Money is in being able to charge a premium for your product. Whether that is in the midrange, the high end or budget segment is irrelevant. If you can carve out margins, you can move product and make a profit. Each segment has a volume that suits its price point. It really doesn't matter what segment you excel on, but you do need presence everywhere. Its not without reason Nvidia is taking a bigger bite out of the AIB pie with their new FE's. They noticed there is fat profit here.

AMD's GPU game is just moving product. Profit on GPU barely existed ever and if you keep following instead of leading, that won't ever change. By contrast, look at Nvidia's margins on GPU and we have all the info we need. Targeting midrange is pointless on its own. These drops are crypto related, but what is next is how do those cards really sell to gamers. Seeing as we have an 80/20 split, give or take between NV and AMD market share, and seeing as Nvidia consistently has much better GPU stock for its midrange.... well you know where this is going. Steam Survey is another dead giveaway. There are barely any RX cards in gaming rigs and I reckon the split is even lower than 80/20.

Ironically, only a well priced RX590 may turn the midrange tide, but if they price it well, out go the margins and you can simply re-read this post to see what happens next. In the meantime, Nvidia is pushing ultra cheap repurposed GP104 leftovers out the door as 1060's.


Crypto is past history, but shareholders don't look at history, they look at future and the fat ugly truth about the state of GPU is now coming out. And it is bleak indeed for GPU, across the board, even in the Nvidia camp. Turing so far needs lots of help to even remotely look like a good deal and reception was terrible. AMD has nothing but vague roadmaps ahead of them. I completely understand the value of these companies needed adjusting. They're both screwing about and stagnating - or rather, struggling with the limitations of architecture and node.

 

[bug]

I was just being sarcastic

 

[Vayra86]

I was just being sarcastic

OK

 

[John Naylor]

MHM. That is just a fairy tale AMD wanted to believe and let its fans believe for lack of a better story. Money is in being able to charge a premium for your product. Whether that is in the midrange, the high end or budget segment is irrelevant. If you can carve out margins, you can move product and make a profit. Each segment has a volume that suits its price point. It really doesn't matter what segment you excel on, but you do need presence everywhere. Its not without reason Nvidia is taking a bigger bite out of the AIB pie with their new FE's. They noticed there is fat profit here.

AMD's GPU game is just moving product. Profit on GPU barely existed ever and if you keep following instead of leading, that won't ever change. By contrast, look at Nvidia's margins on GPU and we have all the info we need. Targeting midrange is pointless on its own. These drops are crypto related, but what is next is how do those cards really sell to gamers. Seeing as we have an 80/20 split, give or take between NV and AMD market share, and seeing as Nvidia consistently has much better GPU stock for its midrange.... well you know where this is going. Steam Survey is another dead giveaway. There are barely any RX cards in gaming rigs and I reckon the split is even lower than 80/20.

Agreed. I'm convinced that nVidia is nerfing SLI performance for this very reason. Gone are the days where a pair of x70's or even x50 Ti's would be faster than the top tier card. With soft costs in delivering each card, there's far more profit selling a x80 than two x70s. Also think that they proced the 970 so aggressively that I am surprised there was never chatter about predatory pricing. Not only did that hurt AMDs top 3 tiers, but the 4th tier folks were like.... well for just a few more bucks I could move up to a 970 ... it hurt 960 sales too no doubt, but that was never gonna sell big anyway. The middle tier cards keep the peeps working and the factories open, the profit comes from the top 3 tiers.

And yes on the FE too.... not only does it have the same PCB as the AIB gaming cards, but they have also abandoned the blower style cooler making them a real competitor.

As for RTX showing up on steam... way way way too early for that. The 750 Ti is still in 4th place and still climbing, 960 / 970 in 6th and 7th. The 970 only started its decline in August. 1070 Ti is still climbing. As long as nVidia has warehouses full of 10xx series cards to sell, the 2xxx series will maintain a huge cost premium and won't see any significant uptake. Also... look at the 1070 ... just 3.94% (1080 = 2,74% / 1080 Ti = 1.53%) market share where the 1060 / 10650 are both up into double digits ... can't buy equivalent cards yet. And the 1070, 1080 and 1080 Ti are all dropping in market share ... despite lower prices.

 

[Vayra86]

Agreed. I'm convinced that nVidia is nerfing SLI performance for this very reason. Gone are the days where a pair of x70's or even x50 Ti's would be faster than the top tier card. With soft costs in delivering each card, there's far more profit selling a x80 than two x70s. Also think that they proced the 970 so aggressively that I am surprised there was never chatter about predatory pricing. Not only did that hurt AMDs top 3 tiers, but the 4th tier folks were like.... well for just a few more bucks I could move up to a 970 ... it hurt 960 sales too no doubt, but that was never gonna sell big anyway. The middle tier cards keep the peeps working and the factories open, the profit comes from the top 3 tiers.

And yes on the FE too.... not only does it have the same PCB as the AIB gaming cards, but they have also abandoned the blower style cooler making them a real competitor.

As for RTX showing up on steam... way way way too early for that. The 750 Ti is still in 4th place and still climbing, 960 / 970 in 6th and 7th. The 970 only started its decline in August. 1070 Ti is still climbing. As long as nVidia has warehouses full of 10xx series cards to sell, the 2xxx series will maintain a huge cost premium and won't see any significant uptake. Also... look at the 1070 ... just 3.94% (1080 = 2,74% / 1080 Ti = 1.53%) market share where the 1060 / 10650 are both up into double digits ... can't buy equivalent cards yet. And the 1070, 1080 and 1080 Ti are all dropping in market share ... despite lower prices.

I think you misread my last sentence, I was referring to the presence of RX (AMD) cards, not RTX cards in the Survey.

 

[bug]

@John Naylor My guess is with SLI/Crossfire failing to break 1% market share, both Nvidia and AMD use mGPU as an excuse to cut their loses. Makes no difference to me, I never cared about those anyway.

 

[gamerman]

well its not 'news'.
amd has lausy gpu and also cpu,bcoz amd only way to battle against nvidia and intel is price. product are lausy or slower and bad efficiency, sso what except,lausy selling.

matter fact,if we seek amd product close, they product are pricey bcoz u get so llittle what u pay. budget averge.

so when amd push price down they get under line nothing or little cash,thats mean amd cant give cash for planning and engineer work, so you get old aged same gpus and cpus all of time.

and more badly go for amd, its near when intel release theys 1st gpu and i promise it is NOT lausy junk like amd gpu. i seeing that amd gpu plan and build end very soon.. its seen drivers release time more long time...

and cpu,intel jus start again push cash for cpu sector and big way.

so, 2020 is d-day for amd really. this year amd not released nothing 'new' gpu, and next year nvidia again release new gpu.

bye amd, but im not sad, amd offer so lausy junk as that they deserve just what they get. if not work hard you not get nothing.

 

[Vayra86]

well its not 'news'.
amd has lausy gpu and also cpu,bcoz amd only way to battle against nvidia and intel is price. product are lausy or slower and bad efficiency, sso what except,lausy selling.

matter fact,if we seek amd product close, they product are pricey bcoz u get so llittle what u pay. budget averge.

so when amd push price down they get under line nothing or little cash,thats mean amd cant give cash for planning and engineer work, so you get old aged same gpus and cpus all of time.

and more badly go for amd, its near when intel release theys 1st gpu and i promise it is NOT lausy junk like amd gpu. i seeing that amd gpu plan and build end very soon.. its seen drivers release time more long time...

and cpu,intel jus start again push cash for cpu sector and big way.

so, 2020 is d-day for amd really. this year amd not released nothing 'new' gpu, and next year nvidia again release new gpu.

bye amd, but im not sad, amd offer so lausy junk as that they deserve just what they get. if not work hard you not get nothing.

Sorry but your writing / English is horrible, I can't make anything of this.

Google translate. Try it, it does better than you.