Wednesday, October 24th 2018
AMD Share Price Falls ~28% via Weak GPU Sales; Revenue Share from GPUs Only 30%
Following the release of theQ3 financial results by AMD, the stock market was quick to respond to less-than-expected operating income and market share numbers with a ~9.2% drop in share price before the markets closed. This was then followed by fervent after-hours trading resulting an even bigger drop to a share price of $17.88 at the time of this post, compared to the starting value of $25.04 earlier today. The small hike and drop after-hours also indicates some enterprising parties made use of the lower share values to their profit.
AMD held a teleconference for their investors to go along with the report, and attempted to better explain what was going on. In particular, they attribute the decreased client GPU sales to a big decrease in the blockchain GPU sales market (read GPU mining) relative to the first half of 2018. The lack of competing products to take on NVIDIA Pascal-, and then Turing-based, GPU solutions also does not help. As it stands, AMD shared news that GPUs now contribute to only ~30% of their revenue with the other 70% coming from the Ryzen-based processor division instead. They hinted strongly at new products coming from both segments, including an on-track path for a 7 nm datacenter GPU later this year and new Ryzen+Vega-powered notebooks, but it appears that more needs to be done to appease their investors at this point.
AMD held a teleconference for their investors to go along with the report, and attempted to better explain what was going on. In particular, they attribute the decreased client GPU sales to a big decrease in the blockchain GPU sales market (read GPU mining) relative to the first half of 2018. The lack of competing products to take on NVIDIA Pascal-, and then Turing-based, GPU solutions also does not help. As it stands, AMD shared news that GPUs now contribute to only ~30% of their revenue with the other 70% coming from the Ryzen-based processor division instead. They hinted strongly at new products coming from both segments, including an on-track path for a 7 nm datacenter GPU later this year and new Ryzen+Vega-powered notebooks, but it appears that more needs to be done to appease their investors at this point.
58 Comments on AMD Share Price Falls ~28% via Weak GPU Sales; Revenue Share from GPUs Only 30%
They need to come fresh to the GPU market with Navi and win back gamers, sooner the better. Personally if you ask me, they can delay the CPU launch a bit further to bring forward GPU launch. Rumour has it 1st half of 2019 will be cpu, 2nd hald GPU. which should be otherway around or lauch both same time at 1st quarter.
Other than that "the same".
But wasn't AMD making tons of cash since they stopped competing at the high end, because money's at the mid segment?
"We remain on track to launch the industry's first 7-nanometer datacenter GPU this quarter. Customer interest in the product is strong based on its performance and differentiated feature set, and we have already secured multiple datacenter wins with shipments expected to begin in the fourth quarter. We continue to increase investments in GPU hardware and software to deliver industry-leading products that we believe will drive growth in the gaming, professional, and datacenter markets. "
seekingalpha.com/article/4214112-advanced-micro-devices-amd-q3-2018-results-earnings-call-transcript?part=single
She also confirmed Epyc 2 in 2019, almost hinted Navi in 2nd half of the year.
The reason they didn't do it your way is cpu section brings more money than gpu. For gpus to make money, a software environment is needed, which AMD doesn't have. Nvidia has been investing on such environment since 2007-08 and they reap the benefit till date.30% of Computing and Graphics segment revenue. Last quarter it was 40%
seekingalpha.com/article/4214112-advanced-micro-devices-amd-q3-2018-results-earnings-call-transcript?part=single
Computing and Graphics segment revenue was $938 million .....Enterprise, Embedded and Semi-Custom segment revenue was $715 million.
Semi-custom is much less than half.
So as much as we love to talk GPUs, apparently the blame lies where I'd least expect it.
Not releasing a 3072 core polaris was one of the dumbest things AMD ever did.
Personally, I wouldn't touch AMD or NVDA at the moment. I truly think the latter has been playing games with channel and inventory numbers and it's going to catch up to them.
However, there's no way to know until 3 months from now where both companies are really headed in terms of revenue, so buying now is a a total gamble. I would not put my money on either at the moment.
Either way, my suspicion is that AMD is gearing up for something. They have Zen2 coming very soon and I'm betting they have a new GPU line coming to answer RTX.
amd has not anyhting really good product.
and 2020 when intel coming gpu market amd are very tight situation.,bcoz intel release their 1st gpu and also soon coming even better cpus for market.
amd must satrt build good product and not only release average useless jusnk and then ask low price,its not wokr anymore.
2020 is d-day for amd.
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.