AMD Plans to Overprice CPUs/GPUs, Despite Underselling Them

AMD Lisa Su

At the last earnings call, AMD revealed that it held back shipments of CPUs and GPUs over the previous two quarters. Interestingly, Dr. Lisa Su, the CEO, admitted that the company has been overpricing its GPUs and CPUs. And even after seeing a drop in sales, the CEO still plans to continue the practice.

In other words, AMD is going to lessen orders from the next quarter. So, if you were struggling to get your hands on the CPUs and GPUs of the red team, just know that things are about to get much worse.

AMD CEO Revealed Limitations on Shipments

AMD feels that the next quarter will return the most diminutive sales figures. How so? The CEO sees that the marketplace for computers and components has become slow and stagnant. And it is not just the red team. Two months ago, NVIDIA recently admitted to having similar restraints for its GPUs.


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However, unlike AMD, the green team did not share any recent details as to whether they will continue with the same tactics. But this is nothing new. Even companies that are outside of the computer space see the same scenario. That is, the sales number drops during the first few months right after the holiday season.


Want to know what the CEO of AMD had to say in the earnings call with investors and analysts? Here is what Dr. Lisa Su stated:

“We (AMD) do believe the first quarter is the bottom for our PC market — for our PC business, and we’ll see some growth in the second quarter and then a seasonally higher second half. In terms of the under shipment, I mean, I think we’re — we under-shipped in Q3, we under-shipped in Q4.

We (AMD) will undership, to a lesser extent, in Q1. So I think you can infer that from our guidance single-digit down. And then, we’ll be back to a more normal environment. Now, just as a reminder though, the first half is not usually a — the first half is usually a seasonally weak client time anyways.”

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