Introduction
AMD admits CPUGPU overpricing and underpricing over the past two quarters and plans to continue. During the meeting of AMD with investors and analysts, the CEO of AMD stated that the organization had delayed the transportation and distribution of CPUs and GPUs for the recent two quarters. The CEO (Lisa Su) gave an explanation that the organization will continue to reduce the orders for the upcoming quarters in order to fulfill the requirements of retailers. Here I focused on AMD admits CPUGPU overpricing and underpricing over the past two quarters and plans to continue.
AMD CEO Announces CPU & GPU Shipment Limits Over Last Two Quarters
The organization believes that the sales of the upcoming quarter will be less due to the slow development of CPUs and GPUs. Still, the stagnant market for computers will be increased effectively. NVIDIA acknowledged similar restrictions in regards to the GPUs two months before but has not informed any recent information in regards to the practices for the development of GPUs. So, AMD admits CPUGPU overpricing and underpricing over the past two quarters and plans to continue. Many non-computer businesses are reporting a lack of sales and supply chain in the last few months affecting sales growth and business performance.
According to Lisa Su, the first quarter is the bottom of the computer market and in the next quarter, the sales will be increased where distribution will be improved with many retailers. In order to gain competitive analytics, AMD has decreased the prices of CPU and GPU over the past few months to target customers and stakeholders.
It is observed that prices for the current AMD Ryzen 7th generation have been reduced by 20% as compared to the first month. On the opposite side, Intel continued to supply computer chips to retailers with better inventory which is challenging to reduce from the shelves because of the deduction in the computer segments. Therefore, AMD admits CPUGPU overpricing and underpricing over the past two quarters and plans to continue.
AMD is ‘under shipping’ chips to balance CPU, GPU supply
In the field of computers, Intel also suffered from sales and growth in the last quarter which instituted pay cuts and tried to move forward to develop new PC chips. The clients of AMD also reduced due to which sales growth was affected and reduced by 20% as compared to the last quarter. So why are not prices of CPUs and GPUs falling too? After communication with investors, Lisa Su stated that AMD has reduced the shipments of computer chips in order to balance the supply and demand of CPUs and GPUs. After the pandemic, many individuals are moving towards gaming computers and gaming CPUs and GPUs or PCs that help AMD to maintain its growth and performance levels.
Despite the higher prices of upcoming GPUs, the last generation RTX 30 series and Radeon RX 6th series graphics are still buying by users with higher prices. So, AMD admits CPUGPU overpricing and underpricing over the past two quarters and plans to continue. Strategic undershipment enables AMD and Intel to maintain the higher prices of chips and graphic cards.
AMD CEO REVEALED LIMITATIONS ON SHIPMENTS
AMD organization observed that the upcoming quarter will be beneficial for maintaining sales and shipments of CPUs and GPUs and will increase performance and growth levels. The CEO stated that the marketplace for PCs and graphic cards has become slow as compared to the last quarter due to which AMD decided to reduce the prices of PCs and segments in order to maintain sales of the products. Before two months, NVIDIA also admitted to implementing such restrictions for GPUs.
AMD is believed to be at the bottom of the market of CPUs and GPUs in the first quarter and will see some growth in graphic cards and chips in the next quarter. Therefore, the CEO of AMD stated that AMD admits CPUGPU overpricing and underpricing over the past two quarters and plans to continue.
Conclusion
Here, I shared the latest tech news that AMD admits CPUGPU overpricing and underpricing over the past two quarters and plans to continue. As compared to the last quarter, in the upcoming quarter, AMD will reduce the shipment of CPUs and GPUs due to higher prices and less market value. However, the CEO of AMD stated that the price will be reduced for the graphic cards and GPUs in order to maintain sales and will see growth in the upcoming quarters. This post helped to gain proper information about AMD admitting CPUGPU overpricing and underpricing over the past two quarters and plans to continue.
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