This news from Tom's Hardware via Motley Fool may explain some of Intel's 10.66% price gain Friday.
Intel's Raptor Lake Is a Big Problem for AMD
By Timothy Green – Oct 28, 2022 at 8:10AM
KEY POINTS
- AMD's Ryzen 7000 CPUs lose badly to Intel's Raptor Lake CPUs in multithreaded performance per dollar.
- Building a system around a Ryzen 7000 chips is also more expensive, factoring in motherboard and memory costs.
- AMD will need to cut prices to compete in a difficult PC market.
AMD's newest chips are simply too expensive.
Advanced Micro Devices (AMD 5.82%) has made a stunning comeback over the past five years. Through multiple generations of Ryzen PC CPUs, the company has steadily gained market share from Intel (INTC 10.66%) while growing revenue and profit considerably. Even after being pummeled this year, AMD stock is up nearly 400% over the past five years.
AMD is now facing two major problems. The first is largely out of its control: Demand for PCs is plunging, leading to inventory corrections across the supply chain. AMD now expects its organic revenue to essentially flatline in the third quarter.
The second problem is Intel's new Raptor Lake CPUs. With Intel boosting core counts and pricing aggressively, AMD's latest Ryzen CPUs are simply overpriced. In a tough PC market, that's not going to go well.
...
A deeper pricing problem
Tom's Hardware didn't mince words toward the end of its review: "AMD will need to reduce pricing on its Ryzen 7000 models now to stay competitive with Raptor Lake."
AMD's pricing problem is actually worse than it looks. Not only are its Ryzen 7000 chips overpriced, relative to Raptor Lake, but building a system around them is more expensive. Ryzen 7000 chips aren't compatible with motherboards that support previous generations of Ryzen chips, and those new motherboards are expensive. On top of higher motherboard costs, Ryzen 7000 chips require DDR5 memory, while Raptor Lake supports both DDR5 and cheaper DDR4.
Full article at: fool.com
 |