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Raising the price of in-demand processors really helps the bottom line, says AMD

fredblogggs Bronze badge

In fact, AMD is cheaper than Intel and you get far more performance. AMD have entire segments in which Intel have literally no competitive offering at all (go ahead, we'll wait while you scrounge their SKU stack for a 64-core part). You also, almost always, get more performance for less power, especially when Intel's PCH is factored in -- EPYC SoCs don't require an external PCH or anything analogous to it; the analogous logic is fully integrated and its power dissipation included in the published TDP figures. And at least when it comes to the EPYC line, AMD's obsolete generation (Rome) is still superior in absolute performance, core count, and cache size to anything Intel have on offer.

AMD have obviously figured that out and decided to raise their prices across the board. So you'll still get better performance and spend less on energy, but the raw price delta has been cut. For the moment, where Intel have comparable products at all, AMD's are still less expensive. I agree with you that this gap will continue to be closed over time, probably with further AMD increases rather than Intel price cuts as Intel have pretty clearly decided they've cut prices as far as they're going to and are going to ride an industry-wide supply crunch as long as they can. The big wildcard over the next 12-18 months is going to be AMD supply: right now you still can't walk into the corner shop and buy a Milan processor at any price; you're very lucky if you can find a heavily marked up Rome. If AMD can meet demand at their current prices, Intel will struggle to move their frankly uncompetitive processors. Right now the only reason anyone buys Intel at all -- other than people who are being paid to do so -- is that they can't get the AMD parts they want. In the client market, Intel seem hopeful that they can convince people to want Alder Lake, but that's still very much in question and they have no answer for servers until at least Sapphire Rapids, if and when they manage to ship that. Until that DDR5 transition begins (no one's in a hurry given the eye-watering prices and near-total unavailability), the ball remains very firmly in AMD's court. They have got to alleviate their supply problems and make hay while the sun shines. You're seeing that with these price increases, but really they could sell twice as many as they're currently making and they simply must fix that. Enormous technology and performance leads like this do not come along often and they must be translated into profits in hand. Whether Intel ever recover is very much in doubt but Ampere and a host of other ARM (and eventually RISC-V) suppliers are waiting in the wings to offer AMD a very stiff challenge among customers who are not wedded to an ISA.

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