As told to NATHAN REIFF First appeared in print on May 19, 2022
AMD, short for Advanced Micro Devices, Inc., is a company that designs and manufactures semiconductors and computer processors. In the second half of 2022, AMD plans to release GPUs based on the new RDNA 3 architecture.
The company’s popular RDNA 2-based GPUs, optimized for efficient, high-performance gaming and similar applications, will be succeeded by RDNA 3-based products.
However, a well-known hardware leaker has expressed concern that the RDNA 3 line will fall short of expectations, opening the door for NVIDIA Corporation (NVDA) products to take advantage of the competitive GPU market.
CONCLUSIONS AND RECOMMENDATIONS:
As of this writing, we anticipate an AMD launch of RDNA 3 architecture-based GPUs later in the year.
Recently, a well-known source of leaked technical information said that the RDNA 3 products were disappointing, but they didn’t tell why.
Rival Industry rumors have also suggested that NVIDIA may unveil new GPUs sooner than expected. It’s also possible that NVIDIA’s GPUs perform better than expected in terms of efficiency.
The RDNA 3 Left the Leaker “Disappointed”:
Kopite7kimi, the hardware leaker, expressed their dissatisfaction with RDNA 3 on May 16. Simultaneously, the leaker disclosed purported specifications for NVIDIA’s RTX 4090, another forthcoming high-end GPU, which implies that the new product from NVIDIA may have lower power requirements than initially believed. The new RTX product would benefit from this and become more widely available, giving NVIDIA an edge. This is especially concerning for AMD because some industry watchers have hypothesized that the RDNA 3 product line may offer a sizable efficiency advantage over rivals.
Kopite7kimi did not specify what was lacking in the RDNA 3, but the release date of NVIDIA’s next-generation GPU may be a factor. TechRadar reports on a recent rumor that these products will be released in the third quarter of this year, potentially before RDNA 3.
Repercussions for Financial Backers
The impact of these developments on investors is clouded by speculation and rumor. As of Q3 2021, AMD and NVIDIA held roughly 20% and 20% of the PC GPU market worldwide shipments, with Intel Corporation (INTC) commanding a 60% share.
However, the introduction of AMD’s rDNA architecture in the summer of 2019 was a turning point for the company.
The video game industry, which relies heavily on GPUs, has the potential to earn over $260 billion annually by 2025. With continued success in establishing its GPU products as the industry standard, driven by strong performance relative to competitor products, AMD will be in a prime position to play a more pivotal role in the booming video game industry and other sectors that make use of this technology. It’s also possible for the opposite to occur if analysts and consumers alike conclude that AMD’s offerings aren’t as appealing as those of its rivals.
Whatever Happened to AMD’s Newest Graphics Processing Units?
It is anticipate that AMD will introduce its RDNA 3 architecture later in 2018. One tech leaker, however, has claimed that RDNA 3 is a letdown without providing any specifics.
What Impact Does This Have on AMD’s Operations?
There is a lot of competition in the graphics processing unit (GPU) market, with many different chipmakers trying to make the best, most cutting-edge hardware possible. New GPU products from a competitor NVIDIA are also in the works. This could be bad news for AMD if analysts see these as more desirable than AMD products.
How Should Investors React?
AMD risks losing orders and market share if its processors are not up to par with competitors.
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