Advanced Micro Devices, Inc. (AMD), the semiconductor and computer processor maker known as AMD, is expected to launch graphics processing units (GPUs) powered by new RDNA 3 architecture in the second half of 2022. RDNA 3 products will succeed the company's popular RDNA 2-based GPUs, which are designed for efficient, high-performance gaming and similar applications. However, a prominent hardware leaker has suggested that the RDNA 3 line could fail to meet expectations, potentially leaving the door open for products by a competitor like NVIDIA Corporation (NVDA) to take advantage in the hotly contested GPU space.
- AMD is expected to launch graphics processing units based on new RDNA 3 architecture later this year.
- A prominent tech leaker recently shared that the RDNA 3 products fell short of expectations but did not explain why.
- Rival NVIDIA is also expected to launch new GPUs, and industry rumors are now suggesting that this launch may come sooner than expected. Additionally, NVIDIA's GPUs may be more efficient than originally predicted.
Leaker Was 'Disappointed' by RDNA 3
The hardware leaker, known on Twitter as Kopite7kimi, posted on May 16 that they were "disappointed" by RDNA 3. At the same time, the leaker shared purported specs for NVIDIA's RTX 4090, another upcoming high-end GPU, which suggest that NVIDIA's new product could have lower power requirements than expected. This would increase accessibility for the new RTX product and give NVIDIA an advantage. This is particularly threatening for AMD because analysts have previously speculated that its RDNA 3 line could have a significant efficiency lead over competition.
While Kopite7kimi did not elaborate on what about the RDNA 3 left something to be desired, the timeframe for NVIDIA's next-generation GPU release could also have an impact. TechRadar points to a recent rumor suggesting a launch of these products could come in Q3 of this year, potentially ahead of the RDNA 3 release and earlier than originally expected.
Impact for Investors
With so much conjecture and rumor, the impact of these developments for investors is not entirely clear. AMD and NVIDIA each occupied about 20% of the PC GPU market by worldwide shipments as of Q3 2021, while larger competitor Intel Corporation (INTC) enjoyed over 60% market share. But AMD's RDNA architecture, first unveiled in summer 2019, has provided the chipmaker with significant momentum.
GPUs are critical to the video game industry, which could generate more than $260 billion in annual revenue by 2025. If AMD is able to continue to establish its GPU products as the industry standard, driven by strong performance relative to competitor products, it will be positioned to play an even more central role in the rapidly growing video game business, as well as a host of other industries making use of this technology. On the other hand, if industry experts believe AMD's products are less desirable than those by competitors, the reverse could happen as well.
What's Going on With AMD's Latest GPU Products?
AMD's RDNA 3 architecture is expected to be unveiled later this year. However, a tech leaker recently said that RDNA 3 was disappointing, without elaborating on reasons why.
How Does This Affect AMD's Business?
The GPU space is highly competitive, with chipmakers vying to create the newest, most powerful, and most efficient products. Rival NVIDIA is also preparing to launch new GPU products. If analysts view these as more desirable than AMD products, AMD's business could suffer.
What Is the Impact for Investors?
If AMD's chips do not meet industry expectations, the company could see dwindling orders or fewer applications of those chips in other products.