• Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

AMD Trims Q3 Forecast, $1 Billion Missing, Client Processor Revenue down 40%, Halved Quarter-over-Quarter

the54thvoid

Moderator
Staff member
Joined
Dec 14, 2009
Messages
10,601 (2.24/day)
Location
Glasgow - home of formal profanity
System Name Newer Ho'Ryzen
Processor Ryzen 3700X
Motherboard Asus Crosshair VI Hero
Cooling TR Le Grand Macho
Memory 16Gb G.Skill 3200 RGB
Video Card(s) RTX 2080ti MSI Duke @2Ghz ish
Storage Samsumg 960 Pro m2. 512Gb
Display(s) LG 32" 165Hz 1440p GSYNC
Case Lian Li PC-V33WX
Audio Device(s) On Board
Power Supply Seasonic Prime TItanium 850
Software W10
Benchmark Scores Look, it's a Ryzen on air........ What's the point?
The PC component industry is out of touch with its user base. That's the problem. Specifically though, I see it as a GPU manufacturing problem. PSU, RAM, Storage options; these items, arguably, have far longer lifespans. But with GPU's (I feel) we're being pushed to upgrade, and companies are inventing/creating new gimmicks to justify their new, expensive products. Yeah, I mean Nvidia.

They'll need to readjust expectations. And we as consumers ought to vote with our wallets. Hypocrisy from a 2080ti owner, I know, but that was my one extravagant splurge.
 
Joined
Jan 3, 2021
Messages
1,188 (1.70/day)
Location
Slovenia
Processor i5-6600K
Motherboard Asus Z170A
Cooling some cheap Cooler Master
Memory 16GB DDR4-2400
Video Card(s) IGP
Storage Samsung 850 EVO 250GB
Display(s) 2x Oldell 24" 1920x1200
Case Bitfenix Nova white windowless
Audio Device(s) E-mu 1212m PCI
Power Supply Seasonic G-360
Mouse Logitech Marble trackball, never had a mouse
Keyboard Key Tronic KT2000, no Win key because 1994
Software Oldwin
How many members of the working class can say, hey, I thought my boss would give me a 55% pay raise, now it looks it will be more like 29%, I'm officially dead now!
 

Lovec1990

New Member
Joined
Sep 15, 2022
Messages
29 (0.38/day)
I agree companys still hope people gonna be buying like they did in mining crazy and that power usage does not matter, yet reality is mining is nearly dead,market is flooded with used GPUs and now in EU electricity,heating and food prices are rising.

So IMO we should wait a few months so companys start realising their PC parts are not selling well enough so they will need to adjust prices.
 
Joined
Apr 12, 2013
Messages
5,428 (1.54/day)
They're rising everywhere tbh but EU is especially hit hard because its literally a battleground, well it's periphery is any way.

As for waiting for a few months I fear this could drag us down to somewhere closer to the 2008 crisis, except in the broader economy! The people in managerial positions & executives simply do not care for their lowest paid employees & I know from experience how bad the greed is at every (higher) level :shadedshu:

If you're saving yourselves from the GPU robbery, the energy bandits will probably get you & if you survive that then surely the loan sharks! Unless the people in power start relinquishing that & give more back to the society things will only get worse, the issue is many of us don't have time to really fight them because we're busy feeding our families.

And the chances of that are exactly zero!
 
Joined
May 11, 2018
Messages
417 (0.25/day)
I've been saying the writing is on the wall for the PC industry for a while. These latest product launches from Nvidia, AMD and Intel driven by their respective CEO's gold fever from the cryto boom, now finally crashing with the reality that the world doesn't want $5k gaming builds, they want to be able to pay their gas and their rent. This is just the beginning. I expect no less than 20% price cut accross the board for all of their products by the end of the year.


Truth be told, this fall in quarter was expected - both CPU and GPU were right before generational change, worst time to sell. The reall fall of revenue will come in the next quarter.

20% price cut won't do much when just the motherboards went up 50%, DDR5 is more expensive than 4 for not much real world gain, power consumption is off the roof - new PSU, higher power bill - lots of people will decide against the upgrade this fall and winter. Because yes, they will invest in other fun things like electricity, heating, food.
 
Joined
Jan 18, 2020
Messages
334 (0.32/day)
I've been saying the writing is on the wall for the PC industry for a while. These latest product launches from Nvidia, AMD and Intel driven by their respective CEO's gold fever from the cryto boom, now finally crashing with the reality that the world doesn't want $5k gaming builds, they want to be able to pay their gas and their rent. This is just the beginning. I expect no less than 20% price cut accross the board for all of their products by the end of the year.

Agree, a lot of the issue is that any reasonable CPU from the last 5+ years is enough for 95% of users.

Last gen graphics cards good enough for 4k.

Simply no point to buy latest gen stuff except for vanity or got money to burn.
 
Joined
Dec 14, 2013
Messages
2,363 (0.72/day)
Location
Alabama
Processor Ryzen 2700X
Motherboard X470 Tachi Ultimate
Cooling Scythe Big Shuriken 3
Memory C.R.S.
Video Card(s) Radeon VII
Software Win 7
Benchmark Scores Never high enough
The PC component industry is out of touch with its user base. That's the problem. Specifically though, I see it as a GPU manufacturing problem. PSU, RAM, Storage options; these items, arguably, have far longer lifespans. But with GPU's (I feel) we're being pushed to upgrade, and companies are inventing/creating new gimmicks to justify their new, expensive products. Yeah, I mean Nvidia.

They'll need to readjust expectations. And we as consumers ought to vote with our wallets. Hypocrisy from a 2080ti owner, I know, but that was my one extravagant splurge.
I can't help but to agree - It's like the industry as a whole is out of step what what the market truly is these days and it's not just an AMD thing - They've all missed it to a degree.

With the surge in crapto during all the lockdowns, increases in online gaming services and so on, I guess they thought this new wave of demand for PC hardware would continue but it didn't.
Lockdowns are more or less over, crapto crashed and all that caused a drop in demand for PC hardware, esp for GPU's which were at that time insanely priced.

With the drop also came decreased profit margins of course and that's natural.

It make a take a couple of quarters for thing to readjust and level out but for now it's gonna be a bumpy ride for all of them, not just AMD themselves.
 
Joined
Mar 15, 2018
Messages
33 (0.02/day)
nah that the result when they thinking they are top marketshare leader and dont give F to low end market, since launch of ryzne 5000 they only release high end first but very very late low end product release

intel core F series is better in every way in sub 200$ budget
 
Joined
Nov 11, 2016
Messages
2,475 (1.12/day)
System Name The de-ploughminator Mk-II
Processor i7 13700KF
Motherboard MSI Z790 Carbon
Cooling ID-Cooling SE-226-XT + Phanteks T30
Memory 2x16GB G.Skill DDR5 6400c36
Video Card(s) Asus RTX4090 TUF
Storage Kingston KC3000 2TB NVME
Display(s) LG OLED CX48"
Case Corsair 5000D Air
Power Supply Corsair HX850
Mouse Razor Viper Ultimate
Keyboard Corsair K75
Software win11
The PC component industry is out of touch with its user base. That's the problem. Specifically though, I see it as a GPU manufacturing problem. PSU, RAM, Storage options; these items, arguably, have far longer lifespans. But with GPU's (I feel) we're being pushed to upgrade, and companies are inventing/creating new gimmicks to justify their new, expensive products. Yeah, I mean Nvidia.

They'll need to readjust expectations. And we as consumers ought to vote with our wallets. Hypocrisy from a 2080ti owner, I know, but that was my one extravagant splurge.

CPU, RAM, Storage, PSU are not improving at breakneck speed like GPU does. I don't see CPU getting 50% faster every 2 years....

Heck I would upgrade CPU+Mobo+RAM every 2 years too if they give me 50% more perf LOL
 
Joined
Apr 12, 2013
Messages
5,428 (1.54/day)
CPU's have progressed more than GPU's in the last 10 years. The fastest desktop CPU's topped out around 8 6 cores back then, it's 64 cores now & at least 10~20x faster in MT workloads.
 
Joined
May 2, 2017
Messages
7,761 (3.80/day)
Location
Back in Norway
System Name Hotbox
Processor AMD Ryzen 7 5800X, 110/95/110, PBO +150Mhz, CO -7,-7,-20(x6),
Motherboard ASRock Phantom Gaming B550 ITX/ax
Cooling LOBO + Laing DDC 1T Plus PWM + Corsair XR5 280mm + 2x Arctic P14
Memory 32GB G.Skill FlareX 3200c14 @3800c15
Video Card(s) PowerColor Radeon 6900XT Liquid Devil Ultimate, UC@2250MHz max @~200W
Storage 2TB Adata SX8200 Pro
Display(s) Dell U2711 main, AOC 24P2C secondary
Case SSUPD Meshlicious
Audio Device(s) Optoma Nuforce μDAC 3
Power Supply Corsair SF750 Platinum
Mouse Logitech G603
Keyboard Keychron K3/Cooler Master MasterKeys Pro M w/DSA profile caps
Software Windows 10 Pro
How many members of the working class can say, hey, I thought my boss would give me a 55% pay raise, now it looks it will be more like 29%, I'm officially dead now!
Very much this. The conceptions of growth that the business world runs on are so inherently toxic and self-defeating that it would be hilarious if the people believing in these things didn't control the livelihoods of pretty much everyone on earth.
 
Joined
Feb 20, 2019
Messages
4,993 (3.62/day)
System Name Bragging Rights
Processor Atom Z3735F 1.33GHz
Motherboard It has no markings but it's green
Cooling No, it's a 2.2W processor
Memory 2GB DDR3L-1333
Video Card(s) Gen7 Intel HD (4EU @ 311MHz)
Storage 32GB eMMC and 128GB Sandisk Extreme U3
Display(s) 10" IPS 1280x800 60Hz
Case Veddha T2
Audio Device(s) Apparently, yes
Power Supply Samsung 18W 5V fast-charger
Mouse MX Anywhere 2
Keyboard Logitech MX Keys (not Cherry MX at all)
VR HMD Samsung Oddyssey, not that I'd plug it into this though....
Software W10 21H1, barely
Benchmark Scores I once clocked a Celeron-300A to 564MHz on an Abit BE6 and it scored over 9000.
My biggest gripe with AMD in the last year is that when manufacturing returned closer to post-pandemic normals, supply and availability of Navi21 was still practically non-existent. Prices for 6800/6800XT/6900XT were often ABOVE the supposedly-overpriced and still-scalped Nvidia equivalents in UK, Germany, and France.

Since the MSRPs were supposed to be lower than Nvidia and RX6000-series weren't as good for ETH mining as Ampere or RDNA1 cards, I'm wondering - where were the highest-margin, most profitable cards?! The miners weren't particularly interested in them to the same scale as Nvidia, and I didn't see them snag many OEM wins either. High prices of the few cards on shelves implies a scarcity, because if there was new stock that was queueing up in inventory, prices would have been reduced to clear shelf space.

For AMD to make record profits, they have to have products on shelves that people can buy without feeling scalped. For the last two years, that hasn't really happened for Navi21, even when other AMD cards and the entire Nvidia range have returned to near-MSRP.
 
Joined
Apr 12, 2013
Messages
5,428 (1.54/day)
AMD's making pretty much all of their major products on 7nm TSMC & their CPU's have the highest margins, this is why even at crypto peak they weren't producing as many GPU's as they did in the past. This was likely strategic & the right choice, of course by not announcing (realistic) MSRP for many of their cards they were also aping Nvidia, destroying a lot of goodwill the PC community had towards them!
 

pressing on

New Member
Joined
Aug 18, 2022
Messages
23 (0.22/day)
Maybe there will be major price cut of AM4 and AM5 in the coming months. That would be awesome
I note that part of the statement by AMD is " The gross margin shortfall to expectations was primarily due to lower revenue driven by lower Client processor unit shipments and average selling price (ASP)." Bearing in mind the prices what Zen 3 CPUs are going for in most markets nowadays ASP is an issue. There's no doubt that AMD is selling Zen 3 in volume but profit margins on fire sale type prices are maybe questionable. Reducing prices further will not improve that. It's the same with AM5. Most retailers are reporting sluggish early sales but high motherboard prices are an issue. The appearance of cheaper motherboards should help boost sales, particularly the B650s.

Intel will be reporting their Q3 numbers on the 27 October and they have already indicated that they are seeing a similar impact for the same reasons.
 
Joined
Apr 12, 2013
Messages
5,428 (1.54/day)
AMD will be moving a lot of their product lines to 6nm, their margins could expand due to that but they'll have to lower prices even further. For all the hoopla around their mobile chips I've seen the 6xxx being priced consistently above Intel's 11th gen here & that should not happen!

Not sure if it's an OEM decision or AMD's but they should be more price competitive than that & where the heck are 6 core zen3+ mobile chips?
 

wolf

Performance Enthusiast
Joined
May 7, 2007
Messages
6,747 (1.19/day)
System Name MightyX
Processor Ryzen 5800X3D
Motherboard Gigabyte X570 I Aorus Pro WiFi
Cooling Scythe Fuma 2
Memory 32GB DDR4 3600 CL16
Video Card(s) Asus TUF RTX3080 Deshrouded
Storage WD Black SN850X 2TB
Display(s) LG 42C2 4K OLED
Case Coolermaster NR200P
Audio Device(s) LG SN5Y
Power Supply Corsair SF750 Platinum
Mouse Zowie EC1-A
Keyboard Razer Blackwidow X Chroma
Software case populated with Artic P12's
Do you honestly believe somehow nvidia or intel will report revenues above targets?
You're undermining the message if you think it's just relegated to AMD
Not at all, of course it's not just limited to AMD, that's my point, and I never said it was.
 
Joined
Aug 25, 2021
Messages
345 (0.74/day)
Even AMD cannot move all chillets to server. There has been saturation and upgrade fatigue in DIY PC market.

Large upgrades from Covid times and sky-rocket prices of new products will make it challenging not only for AMD, bot for all of them together.

PC market has shrank 15-20%, so AMD's numbers are not surprising at all. It will be similar from Nvidia, Intel, ARM and others.
 
Joined
Dec 26, 2006
Messages
2,072 (0.36/day)
Location
Northern Ontario Canada
System Name Just another PC
Processor Ryzen 1700
Motherboard Gigabyte GA-AX370-K3
Cooling Noctua NH-C12P SE14
Memory DDR4-2133 2x16GB
Video Card(s) Asus Tuf - AMD RX 6800
Storage 960 EVO 500GB OS, 1TB SSD Steam & 2TB WD Blue SSD Storage
Display(s) LG 27UL550-W
Case Be Quiet Pure Base 600 (no window)
Audio Device(s) Realtek ALC1220
Power Supply SuperFlower Leadex V Gold Pro 850W ATX Ver2.52
Mouse Mionix Naos 8200
Keyboard Corsair Strafe with browns
Software W10 Pro x64
Benchmark Scores Starts when push power button!!
meh

Just like every other tech company

Working from home over and covid pricing coming to an end

Still made way more profit than pre-covid. This is just things starting to return to per-pandemic normalcy.

"$160 million of charges primarily for inventory, pricing, and related reserves in the graphics and client businesses"

Impossible...........we were told was nothing in stock anywhere on planet ;)
 
Last edited:
Joined
Mar 16, 2017
Messages
1,298 (0.62/day)
Location
Tanagra
I think it’s going to be a rough time for this industry with the way things are designed. All the high-end stuff is very complex and requires advanced cooling and lots of power. Intel and NVIDIA aren’t going to be in much different of a spot. Intel is launching its first GPU at the worst possible time, and is priced accordingly.

I’m curious how Apple is going to do. They went the other direction with power consumption on their desktop, which should make for higher margins, and the iPhone 14 pro is doing really well.
 
Joined
Jun 18, 2018
Messages
125 (0.08/day)
Processor i5 3570K @ 5GHz (1.32V) - de-lid
Motherboard ASRock Z77 Extrem 4
Cooling Prolimatech Genesis (3x Thermalright TY-141 PWM) - direct die
Memory 2x 4GB Corsair VENGEANCE DDR3 1600 MHz CL 9
Video Card(s) MSI GTX 980 Gaming 4G (Alpenföhn Peter + 2x Noctua NF-A12) @1547 Mhz Core / 2000 MHz Mem
Storage 500GB Crucial MX500 / 4 TB Seagate - BarraCuda
Case IT-9001 Smasher -modified with a 140mm top exhaust
Audio Device(s) AKG K240 Studio
Power Supply be quiet! E9 Straight Power 600W
meh

Just like every other tech company

Working from from over and covid pricing coming to an end

Still made way more profit than pre-covid. This is just things starting to return to per-pandemic normalcy.

"$160 million of charges primarily for inventory, pricing, and related reserves in the graphics and client businesses"

Impossible...........we were told was nothing in stock anywhere on planet ;)

Same thought seeing the press release, there was no way there wouldn't be a dip after shortages/pandemic easing off, add to that ever-increasing effects of climate change and “Superpowers” looking to expand a bit more “aggressively”.
This unsustainable growth (aka corporate greed) can't be upheld, most of the big players still do very well, just not 3-5 times YoY for the foreseeable future. Fun part, it most likely will kick a recession to a full depression in many places. :(
 
Joined
Oct 18, 2013
Messages
3,923 (1.18/day)
Location
Next to the huge 155mm Howitzer that's in ur face
System Name The Little One
Processor i5-8279u
Motherboard AZW Speed S
Cooling Fan w/heat pipes + side & rear vents
Memory 32GB Crucial DDR4-3200 (2x 16GB)
Video Card(s) Iris Plus 655
Storage WD Black SN750 2TB m.2 + WD 2TB external nvme
Display(s) 2x Samsung 43" LCD's @1440p
Case Practically identical to a mac mini, just purrtier in slate blue, & with 3x usb ports on the front !
Audio Device(s) Yamaha ATS-1060 Bluetooth Soundbar & Subwoofer
Power Supply 65w brick
Mouse Logitech MX Master 2
Keyboard Logitech G613 mechanical wireless
Software Windows 10 pro 64 bit, with all the unnecessary background shitzu turned OFF !
Benchmark Scores PDQ - all things considered !
make some, lose some...

surge & purge....

What goes around comes around (and usually bites you in the arse on the return trip !)....

Forget but never forgive......

this is how the market works, Capitalism 101 at it's finest :D

HOWEVER, all the companies that became soooo accustomed overpricing everything during the pandemic at outrageous scapler's prices are now feeling the pain of those decisions....

Pain, when used properly, a wonderful motivator, it is !
 
Joined
Dec 26, 2020
Messages
297 (0.42/day)
System Name Incomplete thing 1.0
Processor Ryzen 2600
Motherboard B450 Aorus Elite
Cooling Gelid Phantom Black
Memory HyperX Fury RGB 3200 CL16 16GB
Video Card(s) Gigabyte 2060 Gaming OC PRO
Storage Dual 1TB 970evo
Display(s) AOC G2U 1440p 144hz, HP e232
Case CM mb511 RGB
Audio Device(s) Reloop ADM-4
Power Supply Sharkoon WPM-600
Mouse G502 Hero
Keyboard Sharkoon SGK3 Blue
Software W10 Pro
Benchmark Scores 2-5% over stock scores
No wonder with the shortage basically gone, and the new stuff being overpriced. AM5 sales numbers are very low from what I have seen...
 
Joined
Apr 22, 2021
Messages
198 (0.34/day)
Why are you we talking about market caps though? It's irrelevant when talking of revenues or potential (future) earnings.


Their GPU division was relatively stable, check the gaming section!

Uhm... Did you miss the headlines?!

Those "potential" numbers will be missed... by a lot, so, you're are incredible wrong here. And the bleeding is just getting started for AMD! Oh, BTW, all metrics matters when a company is being evaluated. :laugh:

Yes, because we know that people tend to invest based on the performance of the company and are totally not gambling based on hype... Such a good measurement of performance.

Samuel L Jackson Reaction GIF by Coming to America


Well... it was "Outstanding" for all the companies that benefitted - I am sure nVidia would have said the same, no? If she was asked "How are customers doing?" I am sure her answer would have been different.

"Well, there is a happy ending after all, and Su is now concerned." What is she concerned about?

"Reap what you sow" - dude what is your problem?! What is she sowing? I think AMD is doing well under leadership or I am missing something?

I'm still waiting for this... uhm... "Dr" to innovate something under her vision (not projects that were in development for years and she just took over it). And none of that shilling statement matters. AMD numbers and forecast still has plummetted. Unless you can change that *factual* data, everything else is just gibberish. :roll:
 
Joined
May 2, 2017
Messages
7,761 (3.80/day)
Location
Back in Norway
System Name Hotbox
Processor AMD Ryzen 7 5800X, 110/95/110, PBO +150Mhz, CO -7,-7,-20(x6),
Motherboard ASRock Phantom Gaming B550 ITX/ax
Cooling LOBO + Laing DDC 1T Plus PWM + Corsair XR5 280mm + 2x Arctic P14
Memory 32GB G.Skill FlareX 3200c14 @3800c15
Video Card(s) PowerColor Radeon 6900XT Liquid Devil Ultimate, UC@2250MHz max @~200W
Storage 2TB Adata SX8200 Pro
Display(s) Dell U2711 main, AOC 24P2C secondary
Case SSUPD Meshlicious
Audio Device(s) Optoma Nuforce μDAC 3
Power Supply Corsair SF750 Platinum
Mouse Logitech G603
Keyboard Keychron K3/Cooler Master MasterKeys Pro M w/DSA profile caps
Software Windows 10 Pro
I'm still waiting for this... uhm... "Dr" to innovate something under her vision (not projects that were in development for years and she just took over it).
What, like RDNA, RDNA2, Zen2, Zen3, Zen4? Also, since when do C-level executives "innovate"? I thought they were supposed to lead the company?
Is it actually difficult for you to grasp the simple fact that stock markets are organized gambling rings for the wealthy, and that any link between stock valuations, market cap and other stock-based metrics and the actual real-world value of the company is very tenuous at best?
 
Joined
Apr 22, 2021
Messages
198 (0.34/day)
What, like RDNA, RDNA2, Zen2, Zen3, Zen4? Also, since when do C-level executives "innovate"? I thought they were supposed to lead the company?

Is it actually difficult for you to grasp the simple fact that stock markets are organized gambling rings for the wealthy, and that any link between stock valuations, market cap and other stock-based metrics and the actual real-world value of the company is very tenuous at best?
"Projects" that were under development before she became CEO.

Nice try. NOT! :roll:
 
Top