Tuesday, May 2nd 2017
AMD Increases Its Market Share on the Back of Strong Ryzen Sales
There have been some reports that Intel's CPU division has gotten a sales decline of about $150 million, and that AMD has, conversely, seen its processor sales increase by around the same amount. This would seem to beget a straight, logic leap - that AMD was calling to itself sales that would have belonged to Intel. With Ryzen, AMD did make a great product that consumers are looking to buy, and if recent Passmark statistics are anything to go by, it would seem that yes, AMD achieved its sales increase on the back of Intel sales.
The data, pulled from PassMark's quarterly report, shows AMD gaining 2.2% of the processor market share against Intel - and one needs only look at the market share curve, its ups and downs, to notice just how much this occurrence looks against the trend. And one glance towards the blue Intel line is enough to notice that the company's market share has seemingly dropped by an approximate amount. Breaking a trend is usually the hardest part, and it would seem that AMD has done so, even through platform and motherboard availability issues, increasing consumer awareness for its brand and products and capitalizing on strong execution - an execution that too a long while to bring to fruition. This might be a tide-turner from AMD, and with its recent financial results announcement, it would seem AMD is working itself up, slowly, but surely. Here's hoping this marks a return to form from the red camp. You should, however, take these numbers with a grain of salt, since their origin (Passmark and its benchmarking suites) are hardly representative of the entire consumer spectrum.They do, however, give us a glimpse - if a frayed one at that.
EDIT: On account of the mention of AMD's 2017 fiscal year Q1 results, which have brought its stock tumbling, it's important to note the period Q1 F2017 pertains to only includes Ryzen's launch month of March, which was marred by low inventories and some availability problems with AM4 motherboards. As such, Ryzen sales only account for a month of these fiscal results. So, besides a knee-jerk reaction on a report that people expected to see much better than it is on account of Ryzen, let's just wait a bit until the dust settles and the selling-frenzy ends. I'm by no means a financial expert (not even close), but I would take up the falling AMD stocks right now, and look towards increasing share value on Q2 and Q3 fiscal 2017 reports.
Sources:
ETeknix, Passmark, ETeknix Intel Denies Ryzen Impact
EDIT: On account of the mention of AMD's 2017 fiscal year Q1 results, which have brought its stock tumbling, it's important to note the period Q1 F2017 pertains to only includes Ryzen's launch month of March, which was marred by low inventories and some availability problems with AM4 motherboards. As such, Ryzen sales only account for a month of these fiscal results. So, besides a knee-jerk reaction on a report that people expected to see much better than it is on account of Ryzen, let's just wait a bit until the dust settles and the selling-frenzy ends. I'm by no means a financial expert (not even close), but I would take up the falling AMD stocks right now, and look towards increasing share value on Q2 and Q3 fiscal 2017 reports.
22 Comments on AMD Increases Its Market Share on the Back of Strong Ryzen Sales
Stock value day before launch, $14.96. Stock value right now, $10.92. That's 30% of value just wiped out by Ryzen (still, great value just not what it needed to be). Increasing market share is good but not so good when you increase from almost nothing to very little. The actual info is devastating. About as devastating as the crashing stock after that quarterly report.
Sources:
www.marketwatch.com/story/amds-stock-plunges-toward-biggest-loss-in-over-12-years-2017-05-02
www.cnbc.com/2017/05/02/goldman-analyst-who-nailed-amd-plunge-sees-more-downside-for-chipmaker.html
fortune.com/2017/05/02/amd-ryzen-intel/
- 1st quarter: 1 October 2016 – 31 December 2016
- 2nd quarter: 1 January 2017 – 31 March 2017
- 3rd quarter: 1 April 2017 – 30 June 2017
- 4th quarter: 1 July 2017 – 30 September 2017
So, Ryzen sales are not impacting AMD's fiscal bottom line for this quarter results. They will, however, do so in the 2nd quarter, even if only with a month of Ryzen platform sales. So I think we just have to wait and see. Markets always knee-jerk when things don't go as they plan. This would seem to be one of those occasions. I find this odd to consider, but perhaps some investors thought these results count Ryzen sales? I know I did, at first, before remembering how Fiscal years are set up. If so, these results would be selling-spasm inducing indeed.Good to see AMD CPU bounces back. I am keeping my eyes on the 16core32threads HEDT bad boy.
www.google.com/search?q=amd.stock&oq=amd.stock&aqs=chrome..69i57j0l3.1810j0j4&client=ms-android-verizon&sourceid=chrome-mobile&ie=UTF-8
Also, arent quarterly reports for companies based on THEIR fiscal year???
Sans the drop after the data was released, it didnt go down much because of ryzen. The bigger dropp seems to be from the report.
Also I think TPU is wrong in it not including Ryzen because the Press Release explicitly says it does in several instances:
This is not, repeat: is not the concern of industrials and consumers. A rise in a company's prospects my counter the interest of financial investors; the opposite is common: a bankruptcy generously fills the pockets of investors and lawyers.
What concerns us, consumers, is sales and market share and those are rosy; go AMD !!!
I also agree that there is plenty of room to turn it around with long term increasing sales. The question is are the margins high enough on these or are these laying groundwork for the next product and will that come fast enough? On the flip, the big problem here is prior to launch the stock was at 14.96 as previously stated. It did take that first big hit on the initial reviews and dropped down to 13.03 but then it recovered back to 14.64 over the next month. This is a second even bigger crash all the way down to $10.30. The one year trend is great. The two month trend is really bad. It just happens that two months ago today was the Ryzen launch - coincidence?
Me: "Would like to ask you if you guys are having any problems/RMA/troubleshooting/unstability/reliability with Ryzen hardware that your customers have been buying."
Worker:" I can´t really reply to that because we barely sold Ryzen CPUs, not selling well."
Was surprised myself tbh. I think Ryzen 5 line up is very strong product, but needed a bit higher clocks. Still between a 7600k and a Ryzen 5 1600 I would go with AMD. Problem is that 7700k with a cheap memory kit of 2133/2400mhz still rapes Ryzen in games, for almost the same price as a Ryzen 3000mhz ddr4 + X370 combo. Yes you can use 2133 ddr4 on Ryzen too, but then the gap between it and 7700k would be even bigger (is already 30% in some games, at the same clocks).
When Intel launches their upcoming 6 core CPU for 350/400 bucks, clocked at 4,4ghz/4,5ghz, can only see we back to the same thing again. Ryzen irrelevant, the differences will be massive again like they were between an 8 core bulldozer and a 8 threaded 2600k.
Now, if only the upcoming Bios updates could allow you to use 3800mhz DDR 4 kits at least... would be a massive jump on performance for 144hz/CPU bound gaming.
:toast:
Yesterday drop was well expected as a consolidation of the gains credited since june 2016 as incentive over the new platform (AM4+Ryzen)
Once the fiscal trunk in which the launch happens is over, investors start to ponder hard data and the market reacts accordingly. That's expected.
When the supply line will start to pump as it is intended to be, when ryzen will be sold into pre-built towers, NUCs(?), laptops and the like, the stock will rise accordingly (Given AMD will be able to make the supply machine tic).
You just have to take a look at the last year stock trend to see for yourself what Ryzen really did for AMD.
A bunch of customers plans to have AMD only builds and 580/1060 level performance is not what many are after.The perf difference is vastly vastly exaggerated.