Intel CEO vows to challenge Nvidia, market is "hungry" for alternative GPUs

Irata

Posts: 1,814   +3,055
AMD will get serious competition from Intel in the low to mid-end GPU segment (which is AMDs primary segment).

AMD is only around 15% dedicated GPU marketshare as it is. I would not be suprised if AMD is below 10% in a few years unless they change their pricings. Barely anyone will choose AMD over Nvidia unless value is much better.

AMDs best selling GPUs in the last 5 years have all been low to mid-end stuff like RX580/570/480/470.
Very few people are buying AMDs "high-end" GPUs. This can easily be confirmed by looking at Steam HW Survey.
I think AMD is moving away from / de-prioritizing the GPU low / mid end in particular. Sure, they had 25%+ market share (by unit sales) but what good does that do if they make little profit doing so ? Looking at the demand and ASP for their CPU, giving up wafers for cheap GPU would be crazy. So yes, they had a 25-30% market share by unit but I‘d say their revenue share was far lower, never mind the profit share which was probably in the (very) low single digits.

In fact, I‘d bet AMD‘s GPU revenue share is not lower now than it was when they had a ten percent higher market share. Selling with low margins is not a sustainable business strategy when your competition has higher volumes, asp and margins.

To get away from that situation AMD needs to push for higher prices even if it costs them market share in the short term. Getting away from the ‚cheap also ran‘ image for sure isn‘t easy, so they need to continue on the path they started with RDNA and deliver on performance, features and quality.

The down side to this is that it means zero pricing pressure on nVidia but customers only have to thank themselves for this. And make no mistake - it‘s the market leader with 80+% market share who determines prices and availability.
 

Yenega

Posts: 302   +202
I think AMD is moving away from / de-prioritizing the GPU low / mid end in particular. Sure, they had 25%+ market share (by unit sales) but what good does that do if they make little profit doing so ? Looking at the demand and ASP for their CPU, giving up wafers for cheap GPU would be crazy. So yes, they had a 25-30% market share by unit but I‘d say their revenue share was far lower, never mind the profit share which was probably in the (very) low single digits.

In fact, I‘d bet AMD‘s GPU revenue share is not lower now than it was when they had a ten percent higher market share. Selling with low margins is not a sustainable business strategy when your competition has higher volumes, asp and margins.

To get away from that situation AMD needs to push for higher prices even if it costs them market share in the short term. Getting away from the ‚cheap also ran‘ image for sure isn‘t easy, so they need to continue on the path they started with RDNA and deliver on performance, features and quality.

The down side to this is that it means zero pricing pressure on nVidia but customers only have to thank themselves for this. And make no mistake - it‘s the market leader with 80+% market share who determines prices and availability.

Might be, but this also means that Intel will eat them up, if Intel can deliver GPUs starting from Q1 2022

I expect Intel to go with agressive pricing to get marketshare fast
 

Irata

Posts: 1,814   +3,055
Might be, but this also means that Intel will eat them up, if Intel can deliver GPUs starting from Q1 2022

I expect Intel to go with agressive pricing to get marketshare fast
It will definitely be interesting. My bet / guess is that Intel will target mostly OEM first (easier to convince five customers vs 5 Million) .

I do like the idea of new/modern cards in the lower end as what‘s on the market right now is woefully inadequate.
 

Yenega

Posts: 302   +202
It will definitely be interesting. My bet / guess is that Intel will target mostly OEM first (easier to convince five customers vs 5 Million) .

I do like the idea of new/modern cards in the lower end as what‘s on the market right now is woefully inadequate.
Yeah what I don't like tho, is that TSMC makes the chips and they are already under big pressure. I look forward to see the availablity on release.

I hope eventually Intel will make their GPUs themselves. Their "4" process, former 7nm, should be pretty close to TSMC 6nm.
 

Watzupken

Posts: 386   +357
Pat is not wrong to say that we need some healthy competition in the GPU space, as much as on the CPU space. But for them to pick a fight with Nvidia is going to be a harder battle than with the smaller AMD. From what I can tell, their first gen dedicated GPU sounds great, but because of the very late release date, it is actually not competitive at all. It will still sell out because of acute GPU shortage, but that is not a good reason for people buying their GPUs. If they seriously want to compete in the GPU space, they will need to speed up their next gen GPU release cycle to compete.
 

Nintenboy01

Posts: 89   +71
“with AMD playing a strong secondary player”. Lmao no. Radeon is garbage. It won’t take much for Intel to push AMD out. I can understand why Intel are going after Nvidia, they want an actual challenge and meaningful profits.
well to their credit they're in the PS5 and Xbox consoles so devs will have no choice but to optimize heavily for RDNA. And RDNA is actually competitive in terms of performance and efficiency with Ampere other than RT and DLSS
 

Irata

Posts: 1,814   +3,055
Yeah what I don't like tho, is that TSMC makes the chips and they are already under big pressure. I look forward to see the availablity on release.

I hope eventually Intel will make their GPUs themselves. Their "4" process, former 7nm, should be pretty close to TSMC 6nm.
Even their current 7 process should be fine for up to 3600/6600 level cards although that may take some tweaking for GPU. With that they would cover a good part of the OEMs‘ needs and also the entry level / more than sufficient for good 1080p (1440p with upsampling) gaming market.

I guess they need the capacity for CPU now but that may change in the future.
 

hahahanoobs

Posts: 3,872   +1,920
Zen3+/Zen3 with v-cache will still be on AM4, so it's not a dead platform quite yet.
It's dead. Cache isn't an IPC replacement. You might get that 15%, and you might not. Intel is matching AMD core for core with less cache, so I pray this goes well for AMD, but I doubt it.

It will be better than the garbage Ryzen XT's, but I personally doubt it will be a worthy upgrade for Zen 3 owners.
 

hahahanoobs

Posts: 3,872   +1,920
AMD will get serious competition from Intel in the low to mid-end GPU segment (which is AMDs primary segment).

AMD is only around 15% dedicated GPU marketshare as it is. I would not be suprised if AMD is below 10% in a few years unless they change their pricings. Barely anyone will choose AMD over Nvidia unless value is much better.

AMDs best selling GPUs in the last 5 years have all been low to mid-end stuff like RX580/570/480/470.
Very few people are buying AMDs "high-end" GPUs. This can easily be confirmed by looking at Steam HW Survey.
Everything went wrong with that comment. Literally everything.
 

Yenega

Posts: 302   +202
Everything went wrong with that comment. Literally everything.
Truth hurts I guess.
Nothing but facts in that post.

Feel free to link to sources that claim otherwise.
Most popular AMD card on Steam HW Survey; RX580 - a 5 year old GPU which was a refresh of RX480, pretty much the same chip..

Both 229 dollar MSRP GPU's... Sold for less and came with free games however most people bought GTX 1060 anyway, fo
 
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hahahanoobs

Posts: 3,872   +1,920
Truth hurts I guess.
Nothing but facts in that post.

Feel free to link to sources that claim otherwise.
Most popular AMD card on Steam HW Survey; RX580 - a 5 year old GPU which was a refresh of RX480, pretty much the same chip..

Both 229 dollar MSRP GPU's... Sold for less and came with free games however most people bought GTX 1060 anyway, fo
AMD's problem isn't what they charge.
Considering all of AMD's prices have gone up, that should tell you where they want to be. AMD has shown signs throughout the years how much more they want to charge for their stuff. R9 Pro Duo, R9 Nano, FX 9590, Radeon VII, 5600X and 5800X, X570 boards etc etc etc. You only drop price when your stuff isn't as good. It cheapens your brand/products.

The rest of your comment was just common knowledge to anyone that frequents this site. Market share 17%, GTX 1060 is top GPU (this is not news), RX 580 is rebrand not a refresh. Radeon's primary market is whatever they can sell.

They were both $229 because they were the same GPU. What games they came with is irrelevant. Right now they have mid to high end. Low end is dominated by NVIDIA and Intel for the time being.
 
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Yenega

Posts: 302   +202
AMDs prices went up because they rely 100% on TMSC and can't really deliver anyway. Why sell for cheap and go out of stock when you can keep prices high and have steady supply? There's a reason they did not launch NON-X variants of Ryzen 5000 yet. 5600X sells even tho it's twice as expensive as Ryzen 3600 was.

When Alder Lake comes out, I bet AMD will cut prices instantly tho.

Radeon 6000 series are not bad (apart from 6600 series which have terrible perf/value and a silly 128 bit bus). Sadly most of their high end GPUs are too expensive to make for AMD to prioritize them over CPUs and APUs (consoles).

If AMD does not get their GPU program back on track before Intel launches Arc then things will begin to look very bad for AMDs GPU division and I could easily see AMD below 10% dGPU marketshare in 2 years time..
 
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jpuroila

Posts: 389   +236
It's dead. Cache isn't an IPC replacement. You might get that 15%, and you might not. Intel is matching AMD core for core with less cache, so I pray this goes well for AMD, but I doubt it.

It will be better than the garbage Ryzen XT's, but I personally doubt it will be a worthy upgrade for Zen 3 owners.
By those standards every intel platform released in the past 10 years has been dead on arrival.
 

Yenega

Posts: 302   +202
By those standards every intel platform released in the past 10 years has been dead on arrival.
AMD had a good run, now it's coming to an end.

This always happen. AMD is the small player. They did well and they can keep doing okay, if they just lower prices across the board like usual.

AMD thought for a second they were the big player. Remember not wanting to support Ryzen 3000+ on 300 series chipsets? People went crazy and AMD gave in eventually, or atleast some boards was able to support 3000+. Now they increased prices alot for 5000 series . They will soon come down tho.

Alder Lake is the first big splash but Raptor Lake is going to be even more impressive and by the time RL comes out, DDR5 and Windows 11 has matured too.

Pat Gelsinger is turning Intel around fast. I must say. Last CEO was a big mistake. He was sleeping on the job, together with most of the top guys, which now all got booted.

This has been great for us consumers tho. We need at least 2 players in the CPU segment and I'm glad Intel soon enters GPU segment too. More players, more competition.