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>They are deliberately keeping prices high and creating artificial shortages of GPUs you've seen evidence for this, or it's your opinion? >AMD had a chance to

>They are deliberately keeping prices high and creating artificial shortages of GPUs you've seen evidence for this, or it's your opinion? >AMD had a chance to really pull ahead of Nvidia with a graphics card line that you just told us is far behind Nvidia's?

ommz 4y ago
>you've seen evidence for this, or it's your opinion? Probably alluding to the under-shipping of GPUs; stated by Lisa Su during the recent investor call[0] [0]https://www.fool.com/earnings/call-transcripts/2023/02/01/advanced-micro-devices-amd-q4-2022-earnings-call-t/ https://www.fool.com/earnings/call-transcripts/2023/02/01/ad...
lmm 4y ago
> with a graphics card line that you just told us is far behind Nvidia's? Cheap and good enough can absolutely be a way to win.
- andrewstuart 4y ago
  Yup. If AMD actually competed on price then they'd be shifting the GPU market away from Nvidia. They seem content however just be second best but making bank.
layoric 4y ago
They had a chance to meet a much better price to performance but IMO nvidia showed that the market is willing to pay a premium for GPUs and both major players are exploiting that. Nvidia relaunched the 4080 12gb as the 4070ti reducing the price by $100. There has to be one hell of a profit margin on the high end cards.
Brybry 4y ago
AMD said it themselves. They're "undershipping" to "reduce downstream inventory". [1] The take from multiple[2][3][4] journalists on that call is they're trying to avoid a "supply glut" and maintain high prices. [1] https://seekingalpha.com/article/4574091-advanced-micro-devices-inc-amd-q4-2022-earnings-call-transcript https://seekingalpha.com/article/4574091-advanced-micro-devi... [2] https://www.pcgamer.com/amd-undershipping-chips-to-help-prop-prices-up/ https://www.pcgamer.com/amd-undershipping-chips-to-help-prop... [3] https://gamerant.com/amd-undershipping-graphics-cards/ https://gamerant.com/amd-undershipping-graphics-cards/ [4] https://www.extremetech.com/computing/342781-amd-ceo-says-its-limiting-supply-of-cpus-and-gpus-to-maintain-high-prices https://www.extremetech.com/computing/342781-amd-ceo-says-it...
- fsckboy 4y ago
  you put "supply glut" in scare quotes, but again, do you know that their motive is cynical? they're talking to the public, i.e. investors, and they could easily be saying "our current sales figures are lower not because our product is not popular, but because there is currently a large inventory downstream to meet current demand. When that glut is cleared, expect our sales to resume." if downstream sellers have sufficient inventory, the only way to induce them to buy more would be for AMD to drop prices. If AMD cards are in hot demand and selling out immediately, restricting supply would be artificially boosting prices. But if the downstream pipeline is full, it's not right to say that reduced demand from wholesalers while that glut clears is AMD artificially boosting prices.

ommz 4y ago

>you've seen evidence for this, or it's your opinion? Probably alluding to the under-shipping of GPUs; stated by Lisa Su during the recent investor call[0] [0]https://www.fool.com/earnings/call-transcripts/2023/02/01/advanced-micro-devices-amd-q4-2022-earnings-call-t/ https://www.fool.com/earnings/call-transcripts/2023/02/01/ad...

lmm 4y ago

> with a graphics card line that you just told us is far behind Nvidia's? Cheap and good enough can absolutely be a way to win.

andrewstuart 4y ago
Yup. If AMD actually competed on price then they'd be shifting the GPU market away from Nvidia. They seem content however just be second best but making bank.

layoric 4y ago

They had a chance to meet a much better price to performance but IMO nvidia showed that the market is willing to pay a premium for GPUs and both major players are exploiting that. Nvidia relaunched the 4080 12gb as the 4070ti reducing the price by $100. There has to be one hell of a profit margin on the high end cards.

Brybry 4y ago

AMD said it themselves. They're "undershipping" to "reduce downstream inventory". [1] The take from multiple[2][3][4] journalists on that call is they're trying to avoid a "supply glut" and maintain high prices. [1] https://seekingalpha.com/article/4574091-advanced-micro-devices-inc-amd-q4-2022-earnings-call-transcript https://seekingalpha.com/article/4574091-advanced-micro-devi... [2] https://www.pcgamer.com/amd-undershipping-chips-to-help-prop-prices-up/ https://www.pcgamer.com/amd-undershipping-chips-to-help-prop... [3] https://gamerant.com/amd-undershipping-graphics-cards/ https://gamerant.com/amd-undershipping-graphics-cards/ [4] https://www.extremetech.com/computing/342781-amd-ceo-says-its-limiting-supply-of-cpus-and-gpus-to-maintain-high-prices https://www.extremetech.com/computing/342781-amd-ceo-says-it...

fsckboy 4y ago
you put "supply glut" in scare quotes, but again, do you know that their motive is cynical? they're talking to the public, i.e. investors, and they could easily be saying "our current sales figures are lower not because our product is not popular, but because there is currently a large inventory downstream to meet current demand. When that glut is cleared, expect our sales to resume." if downstream sellers have sufficient inventory, the only way to induce them to buy more would be for AMD to drop prices. If AMD cards are in hot demand and selling out immediately, restricting supply would be artificially boosting prices. But if the downstream pipeline is full, it's not right to say that reduced demand from wholesalers while that glut clears is AMD artificially boosting prices.