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AMD is not just a fight with Nvidia in graphics, but also a surplus inventory



AMD has been the most profitable year since 2011, and investors are excited about the future of the company. Namely, AMD's share price rose by more than 15 percent in the early morning hours today, following the fourth quarter of this year and the year-round profit statement, filled with pink numbers. However, one of the more interesting things that arise from the accompanying conference call with investors relates to graphics. Simply put, AMD and its partners are still sitting on a bunch of old graphics cards as AMD is trying to launch new ones.

Of course, this is not a situation that is unique to AMD. Earlier this week, Nvidia's chief executive Jensen Huang was sincerely invited for the fourth quarter as a "real hit in the hose" for less than the expected GPU sales, including some high-end graphics cards based on the new Turing architecture.

AMD and Nvidia are not entirely in the same boat – two of Nvidia's major problems are the GeForce RTX series being priced too high, and there are currently not many games that are used in Turing's unique capabilities, such as real-time track tracking – however both are in advance acquainted with the existing excess of older card stock.

"So, when we look at the GPU channel inventory, we believe that our Q4 partners reduced inventories and reduced inventories in the first quarter. We still think that Q1 levels are high and that Q2 will flood, and we will see some elevated levels We will have to see how sales really are going on, but I expect Q2 to have improved channel inventory levels, and we'll be back on track for success, "said AMD Executive Director Dr. Lisa Su.

Given the culmination, AMD has recently announced its Radeon VII, based on the 7-nanometer version of Vege, and will be sold next week for $ 699. This is part of what AMD regards as its "widest and most competitive product portfolio ever". Next, follows Navi, AMD's new generation of GPUs, later this year.

The price of $ 699 is valid for GeForce RTX 2080. It remains to see what kind of interest it generates, especially when Dr. Su admits that although "players are still buying GPUs, they may also be more price-sensitive". "

"And so I can imagine that it might be a bit more soft at the top than the middle range, but we believe we understand what's happening on the gaming side of the business and that's going to be driven. as we go through this year and with our launch of Radeon VII, as well as our launch on the gaming site, "Dr. Su said.

The bottom line is that there could be a chance to retrieve the previous generations of graphics cards (Polaris, the first Gen Vega and Pascal) at lower prices because sellers want to empty their existing stock. As always, we will go through all the exciting things we are encountering.


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