Also huge margins compared to client. Not sure how margins are in gaming - though they have no competition, Sony and Microsoft are probably receiving a volume discount that gets contractually renegotiated every so often.
40 year high inflation in the U.S., $5/gal. gas and a 20% increase in rent certainly has not helped U.S. sales. It looks like we're in for a rough ride at least until 2024 after all of the economic damage being imposed.
It's not only that. 2019 and 2020 where when client PC sales were booming, as a lot of people needed to a PC that could handle remote work. Now, covid19 is not over yet, but people don't need to renew their 2019~2021 PCs just for remote work. There is just no demand for new client PCs, inflation or not.
Spot on. Realistically anybody who bought a PC in the last few years has no reason to upgrade unless they need bleeding edge performance.
The sad thing is I suspect sheep will line up in droves for the RTX 4080 launch next month ready to pay $900-$1200 for a 80-series card, that while faster than the 3080, is like comparing a Ferrari to a Lamborghini; both will be CPU limited in most games unless you are actually playing 4K+ with full RTX and detail where they might be a bottleneck.
A lot of these purchases were refreshing decade-old machines. The sad part is that forecasting wont' even correctly predict it when there's a sudden uptick in about 5 years and a dropoff a year later, and another round at about 8 years, and one last round at 10 years.
It is interesting how people simultaneously blame the government for inflation and for the recession created to slow it down. I agree that a lot of the steps taken to slow the economy are not going to solve the problem over the long-term. I also know that the powers that be are following the standard formula for reducing inflation. This mess was caused by extreme profiteering and corporate greed. The only long-term solution I see, is more control over corporate profits. I don't know how you legislate that.
No, it's wanton money printing around the pandemic. Paying productive people not to work is an emergency measure - sustained too long it's very deleterious. Inflation simply happens when people have that money but no one worked to produce the stuff they're trying to buy, so there's a bidding war on dwindling inventory.
We had a long run of economic growth and really low inflation after the '08 recession, i.e. 2008-2019. Profiteering and corporate greed certainly existed throughout that period so can't alone cause inflation. In a sense there was plenty of money printing, too, but it went to the rich in the form of securities appreciation. That small population is not typically producing much stuff anyway, or buying unusual amounts of the products that contribute to CPI, so we had next to no inflation.
Oh, it's easier than you'd think. You do the opposite of Privatization. You Nationalize the companies, which makes them beholden to the government, and tax payers.
But maybe a smaller part of it is Intel became competitive again on the desktop. If Ryzen 7000 came out 3 months earlier the decline might have been a little less severe.
5. Something bln is more than the 4.something bln they made in Q3 last year so I would say that is a good thing. Sure, with the profit obsession these days, nothing is good enough
Dont forget this year their revenue includes Xilinx which was not there last year. So no apples for apples comp until Q2 next year. That said DC growth is extremely promising. That is the crown jewel for AMD and with Zen 4 based chips to release its looking even better.
the cpuy market has been dead for a year because of pricing and availability. everyone just held off for prices to go back to normal. this year as long as the recession doesn't impact too much should be better
CPUs have been available this whole time - fabs did not shut down for extended periods as a result of pandemic. There wasn't much of a shortage, anyway, or if there was it was masked by worse shortages of other system components like GPUs. It is demand that creates higher prices, however, and that pandemic demand is whipsawing into depressed demand as everyone and their grandma now has a 1-2 year old system. What's there to upgrade?
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trivik12 - Thursday, October 6, 2022 - link
Where does Xilinx revenue fit in? It was part of AMD only from Q2.Ryan Smith - Thursday, October 6, 2022 - link
It's part of the Embedded segment.trivik12 - Thursday, October 6, 2022 - link
Thank you. Then DC numbers are phenomenal to grow 8% Q on Q.Samus - Friday, October 7, 2022 - link
Also huge margins compared to client. Not sure how margins are in gaming - though they have no competition, Sony and Microsoft are probably receiving a volume discount that gets contractually renegotiated every so often.ilt24 - Saturday, October 8, 2022 - link
Ryan,Xilinx revenue is split between DC and Embedded. From the last earnings report:
“ Data Center segment includes server CPUs, data center GPUs, Pensando and Xilinx data center products.
Client segment includes desktop and notebook PC processors and chipsets.
Gaming segment includes discrete graphics processors and semi-custom game console products.
Embedded segment includes AMD and Xilinx embedded products.”
Ryan Smith - Saturday, October 8, 2022 - link
Ahh, you are correct. Thanks!Techie2 - Thursday, October 6, 2022 - link
40 year high inflation in the U.S., $5/gal. gas and a 20% increase in rent certainly has not helped U.S. sales. It looks like we're in for a rough ride at least until 2024 after all of the economic damage being imposed.meacupla - Thursday, October 6, 2022 - link
It's not only that. 2019 and 2020 where when client PC sales were booming, as a lot of people needed to a PC that could handle remote work. Now, covid19 is not over yet, but people don't need to renew their 2019~2021 PCs just for remote work. There is just no demand for new client PCs, inflation or not.Threska - Thursday, October 6, 2022 - link
VR as a growth market. ;-)Samus - Friday, October 7, 2022 - link
Spot on. Realistically anybody who bought a PC in the last few years has no reason to upgrade unless they need bleeding edge performance.The sad thing is I suspect sheep will line up in droves for the RTX 4080 launch next month ready to pay $900-$1200 for a 80-series card, that while faster than the 3080, is like comparing a Ferrari to a Lamborghini; both will be CPU limited in most games unless you are actually playing 4K+ with full RTX and detail where they might be a bottleneck.
Blastdoor - Friday, October 7, 2022 - link
Or EVGA is right and they don’t.TEAMSWITCHER - Friday, October 7, 2022 - link
That is exactly right.lmcd - Friday, October 7, 2022 - link
A lot of these purchases were refreshing decade-old machines. The sad part is that forecasting wont' even correctly predict it when there's a sudden uptick in about 5 years and a dropoff a year later, and another round at about 8 years, and one last round at 10 years.Einy0 - Saturday, October 8, 2022 - link
It is interesting how people simultaneously blame the government for inflation and for the recession created to slow it down. I agree that a lot of the steps taken to slow the economy are not going to solve the problem over the long-term. I also know that the powers that be are following the standard formula for reducing inflation. This mess was caused by extreme profiteering and corporate greed. The only long-term solution I see, is more control over corporate profits. I don't know how you legislate that.Wrs - Sunday, October 9, 2022 - link
No, it's wanton money printing around the pandemic. Paying productive people not to work is an emergency measure - sustained too long it's very deleterious. Inflation simply happens when people have that money but no one worked to produce the stuff they're trying to buy, so there's a bidding war on dwindling inventory.We had a long run of economic growth and really low inflation after the '08 recession, i.e. 2008-2019. Profiteering and corporate greed certainly existed throughout that period so can't alone cause inflation. In a sense there was plenty of money printing, too, but it went to the rich in the form of securities appreciation. That small population is not typically producing much stuff anyway, or buying unusual amounts of the products that contribute to CPI, so we had next to no inflation.
Oxford Guy - Sunday, October 30, 2022 - link
'That small population is not typically producing much stuff anyway,'They're busy producing meritocracy! I personally love meritocratic manatee fillets, fresh from $500 million yachts.
meacupla - Wednesday, October 12, 2022 - link
Oh, it's easier than you'd think.You do the opposite of Privatization. You Nationalize the companies, which makes them beholden to the government, and tax payers.
Oxford Guy - Sunday, October 30, 2022 - link
'I don't know how you legislate that.'Make bribery ('lobbying') illegal. However, since those who are being bribed and those who are bribing make the rules, good luck.
Blastdoor - Friday, October 7, 2022 - link
I agree this is mostly pandemic dynamics.But maybe a smaller part of it is Intel became competitive again on the desktop. If Ryzen 7000 came out 3 months earlier the decline might have been a little less severe.
rmfx - Friday, October 7, 2022 - link
Make your partners motherboards less than 700 dollars and maybe people will buy……haukionkannel - Friday, October 7, 2022 - link
Partners decide their pricing as they will! Otherwise it would be a cartel.Oxford Guy - Sunday, October 30, 2022 - link
'Partners decide their pricing as they will! Otherwise it would be a cartel.'I hear that this is the year of Linux on the desktop.
meacupla - Friday, October 7, 2022 - link
I would wait for B650 mobos to show up. Supposedly, there are models as cheap as $125.Threska - Friday, October 7, 2022 - link
Barely out of the gate and people are already complaining about why it isn't cheap. Learn to wait just like people did when AM4 first came out.yeeeeman - Friday, October 7, 2022 - link
5. Something bln is more than the 4.something bln they made in Q3 last year so I would say that is a good thing. Sure, with the profit obsession these days, nothing is good enoughtrivik12 - Friday, October 7, 2022 - link
Dont forget this year their revenue includes Xilinx which was not there last year. So no apples for apples comp until Q2 next year. That said DC growth is extremely promising. That is the crown jewel for AMD and with Zen 4 based chips to release its looking even better.nunya112 - Saturday, October 8, 2022 - link
the cpuy market has been dead for a year because of pricing and availability. everyone just held off for prices to go back to normal. this year as long as the recession doesn't impact too much should be betterWrs - Sunday, October 9, 2022 - link
CPUs have been available this whole time - fabs did not shut down for extended periods as a result of pandemic. There wasn't much of a shortage, anyway, or if there was it was masked by worse shortages of other system components like GPUs. It is demand that creates higher prices, however, and that pandemic demand is whipsawing into depressed demand as everyone and their grandma now has a 1-2 year old system. What's there to upgrade?Oxford Guy - Sunday, October 30, 2022 - link
'What's there to upgrade?'GameWerks III — ray-tracing the invisible grains of sand under the water.