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

[Mistral]

The whole tech sector is getting decimated the last few days...

 

[Turmania]

Lets be honest, AMD basically crippled gamers side on their GPU series. They went for Mining market and got some good sales from that side. but when that market has blown up. they are back to square one a square they neglected for some time, and now it is hurting them.
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.

 

[zelnep]

Stock volatility should be ignored in this market, today -9% "omg, sell now", tomorrow +15% "strong buy" (from same analysts*), but what about real AMD reported results, the Q3 2018 is the same as Q3 2017, I did expect more! it is not like there were mining craze in Q2-Q3 2017.

 

[medi01]

the Q3 2018 is the same as Q3 2017

Margins are up, income is up, revenue is up.
Other than that "the same".

 

[bug]

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?

 

[Th3pwn3r]

If Nvidia was going up, fair enough, but they've dropped by quite a lot as well, most likely based on the crypto market news for GPUs.
View attachment 109331

Now where are all you goofs who disagreed with those of us that said the great numbers for AMD AND Nvidia were largely because of crypto? Still disagree?

 

[velizar]

And that is a problem, because...

Isn't there some VERY IMPORTANT PIECE OF INFORMATION missing in this article, let alone with this misleading sentence pulled into the TITLE? Are you guys also playing with stock!??!!?

"GPU contribute only 3 0%" information is useless, without mentioning how much it was in the past.
Last time I've checked, Semi-custom was half of AMD's business... So, what, again>

well, its a very harsh misunderstandig. whats on the slides is : "Ryzen cpu more than 70% of client revenue" but it actually means client CPU revenue.

 

[Salty_sandwich]

And then the release of the PS whatever and Xbox whatever, shares probs go back up?

 

[prtskg]

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.

Lisa confirmed they already have datacenter wins for Vega 7nm and it will ship in this quarter.
"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. "
https://seekingalpha.com/article/42...-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.

And that is a problem, because...

Isn't there some VERY IMPORTANT PIECE OF INFORMATION missing in this article, let alone with this misleading sentence pulled into the TITLE? Are you guys also playing with stock!??!!?

"GPU contribute only 3 0%" information is useless, without mentioning how much it was in the past.
Last time I've checked, Semi-custom was half of AMD's business... So, what, again>

30% of Computing and Graphics segment revenue. Last quarter it was 40%
https://seekingalpha.com/article/42...-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.

 

[bug]

From what I've read elsewhere, analysts' worries are two-fold. On one hand AMD's growth in the server market has stalled (before gaining a significant piece of the pie). On the other, they apparently seem to have failed to capitalize on Intel's shortage of desktop CPUs.
So as much as we love to talk GPUs, apparently the blame lies where I'd least expect it.

 

[TheinsanegamerN]

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?

Nope. That was AMD's mouthpiece saying that, but when the geforce 1070, with fatter margins then the RX480, sells more then the 480, 470, and 460 put together, you know AMD wasnt swimming in profits.

Not releasing a 3072 core polaris was one of the dumbest things AMD ever did.

 

[Vya Domus]

Now where are all you goofs who disagreed with those of us that said the great numbers for AMD AND Nvidia were largely because of crypto? Still disagree?

And that relates to this how ? News about the massive drop in crypto related sales occurred many months ago yet these shares have plummeted just now. You have no idea how out of touch most investors are, I can guarantee you a good chunk of them never gave a damn about how many GPUs AMD or Nvidia sold for crypto or were even aware of that distinction.

 

[Sasqui]

Typical investor panic. The price will come back up.

Careful, you won't know the answer to that until next earnings release. They were both riding high on the crypto wave, and the market is completely saturated.

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.

 

[lexluthermiester]

Personally, I wouldn't touch AMD or NVDA at the moment.

Why, this is a golden opportunity to make some money. The values of both companies will come back up. Buy low, sit on it and earn dividends or sell when the price goes high.

 

[Sasqui]

Why, this is a golden opportunity to make some money. The values of both companies will come back up. Buy low, sit on it and earn dividends or sell when the price goes high.

Keep in mind that these are all opinions and either of us could be right on that call. One thing they don't have going for them at the moment is the overall market, so there could be some gains coming back if things settle down.

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.

 

[Assimilator]

Hmmm... if I was an investor, I'd be pretty worried that AMD is essentially yielding the high-end discrete GPU market to NVIDIA. Especially since AMD had been so competitive in that arena for so long, even with far fewer resources than NVIDIA. Especially since Intel is supposedly launching its own dGPU in 2020 and has poached people like Raja to make it happen.

 

[lexluthermiester]

Especially since Intel is supposedly launching its own dGPU in 2020 and has poached people like Raja to make it happen.

AMD allowed him to be "poached". Everyone working in the tech industry agrees to a non-competition clause when employed. AMD did not have to let him go work for Intel. They allowed it. So either they don't need him or wanted to replace him.

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.

 

[tvamos]

People only see this as GPU sales decrease, but how much have their CPU sales increase with (Ry)zen? That also brings this percentage down, right?

 

[Salty_sandwich]

If I was AMD I would get rid of the GPU side of the company (but maybe just keep the APU side of the IP) and just focus all efforts on CPU , that would give the Nvidia fans something else to be happy about

 

[gamerman]

noyhing new and just what except.

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.

 

[John Naylor]

It's not like the writing hasn't been on the wall .... inverstors should get a good understanding of "pump and dump" before investing after reading on line blogs. "ooh ooh more cores yeah its gonna be a winner"..... problem is 98% of folks didn't need more cores. And after the intial post Ryzen excitement, AMD market share decreased from 22.3% in Q3 2017 to 20.9% in Q3 2018. So why you ask ? .... Reality has set in

 

[Th3pwn3r]

And that relates to this how ? News about the massive drop in crypto related sales occurred many months ago yet these shares have plummeted just now. You have no idea how out of touch most investors are, I can guarantee you a good chunk of them never gave a damn about how many GPUs AMD or Nvidia sold for crypto or were even aware of that distinction.

You need to learn how slopes work.

 

[Gasaraki]

It's ironic, AMD are now in the position where they actually have a competitive product on the market, so the market expects bigger profits.

Posting a loss... less than expected doesn't please the shareholders anymore.

In the past the GPU market kept the money coming in because the CPU side sucked. Now the GPU side is falling yet CPUs have not increased at a fast enough rate.

 

[bug]

In the past the GPU market kept the money coming in because the CPU side sucked. Now the GPU side is falling yet CPUs have not increased at a fast enough rate.

That is why one diversifies, isn't it?

 

[Gasaraki]

If I was AMD I would get rid of the GPU side of the company (but maybe just keep the APU side of the IP) and just focus all efforts on CPU , that would give the Nvidia fans something else to be happy about

Thanks AMD for buying ATi and then destroying them.