Latest news with #AMD
Digital Trends
2 hours ago
- Business
- Digital Trends
Why are GPUs so expensive right now? The answer is far from simple
Yes, some of the best GPUs are horrendously expensive. I know what you must be thinking — what else is new? We've all grown used to the state of things, but that doesn't make it any easier to deal with. Building a PC is now pricier than ever, all because the overpriced GPU accounts for the bulk of the overall cost. But why are we dealing with this right now? The previous generation of GPUs, while still expensive in its own right, wasn't plagued by all the problems that the current-gen cards are facing. Here are some reasons as to why GPUs are so expensive right now. Tariffs played a part It's impossible to discuss this topic without mentioning the tariffs — regardless of the current state of the matter. Recommended Videos Throughout this year, tariffs on imports from China and Taiwan have affected the GPU market (as well as many other markets) in a big way. The situation is still highly dynamic, although right now, tariffs are largely in effect. Deadlines continue shifting as the U.S. administration meets with various officials. Most recently, China and the U.S. 'agreed to work on extending a deadline for new tariffs on each other,' as per the AP. However, a 10% to 20% tariff on imports from some countries still remains in place, with new trade deals with Vietnam, Indonesia, the Philippines, and Japan all being in that range. As the vast majority of GPUs — or at the very least, the chips that they use — are manufactured outside of the U.S., these tariffs, as well as global economic uncertainties, must play a part in GPU prices. This goes beyond a simple 'there's a tariff, so GPUs have to be pricier' narrative. Uncertainty shook the entire supply chain, and it's creating a ripple effect that trickles down to the consumer. Nvidia and AMD prepared well (but not in the way we want) In the previous generation of graphics cards, meaning Nvidia's RTX 40-series and AMD's RDNA 3, we had it pretty good. We just didn't know it back then. Coming out of the massive GPU shortage of 2021, graphics cards were never quite priced the same, but at least they were readily available. And even if you didn't want to shell out the cash on a freshly released GPU, you could always buy a new card from the previous generation at a reasonable price. This was especially true for AMD. I personally used to recommend buying one of AMD's RDNA 2 GPUs as a budget alternative to get solid performance. Cards like the RX 6800 XT or the RX 6950 XT dropped in price a lot since launch, and there was a period of time where you could easily snag one of those instead of a newer card and get similar performance for less. Well, unfortunately, this time around, that is not the case. Nvidia started sunsetting RTX 40-series GPUs last year. One by one, production slowed down to a halt, keeping the supply of these GPUs tightly constrained. Although there have been fewer rumors about AMD doing the same thing, it's clear that something's up, because last-gen cards, while available, are largely overpriced. It could just be the state of the market as a whole, or it could be AMD keeping better tabs on the supply. One way or another, buying an older GPU is no longer the fix to our current-gen problems. The lack of competition is a problem Speaking of problems, the lack of competition is definitely one, and it's even more noticeable in this generation than in the previous one. Don't get me wrong — I'm a huge fan of both AMD and Intel. In fact, the Arc B580 is the one GPU I keep recommending to people this year, and the RX 9070 XT would absolutely be my favorite if it actually sold at MSRP. I'm not biased in favor of Nvidia; if anything, you'll see me rooting for the underdogs more often than not. With that said, there's definitely a lack of serious competition at the high-end, which is part of the reason why Nvidia can get away with an RTX 5090 that starts at $2,000 (and realistically sells for closer to $3,000). Intel's aim is the budget GPU market, and while it does create some heat for both AMD and Nvidia in that segment, there's just not enough supply for the competition to be serious. The Arc B580 continues selling above the MSRP, and it needs to sell at MSRP for its competitors to have to worry. AMD opted out of the high-end GPU race in this generation, leaving the RTX 5090 uncontested. The RTX 5080 is in a less comfortable position, but the RX 9070 XT can't hope to beat it. At most, it can kind of keep up when overclocked — which is still great given the price difference, but not enough for enthusiasts who want steady, guaranteed performance. With AMD's GPU presence kind of diminished this generation, Nvidia can set the prices, and it does. Then, the market conditions add an extra premium on top of those prices. AMD might be more competitive in the next generation, though, so let's hope for improved pricing across the board. Supply and demand, basically Demand today for our new @amdradeon cards has been phenomenal. We are working with our AIBs to replenish stock at our partners ASAP in the coming days and weeks. MSRP pricing (excluding region specific tariffs and/or taxes) will continue to be encouraged beyond today so don't… — Frank Azor (@AzorFrank) March 6, 2025 The above are just some of the reasons why GPUs are expensive right now. I'm not a market analyst, but as a PC hardware journalist, these are my observations on the current state of GPUs and PC building at large. It all comes down to supply and demand, in a way. Various factors play into scarce supply levels. Meanwhile, gamers still need and want GPUs to power up their gaming desktops. Unfortunately, there's no immediate end in sight. We've gotten through the worst of it. Nearly all graphics cards are available in stores; the pricing remains the problem, though. I'm often asked when it'll get better and whether GPUs are worth buying right now. My advice is usually to wait, unless you absolutely have no other choice. There are other, cheaper PC upgrades to invest in right now, and those should be your main focus. Not every part of the PC building industry has been as hard as semiconductors, and more specifically, graphics cards. There'll come a day when the situation is less dire, but right now, your best bet is to hunt for deals and wait for the odd MSRP restock at your retailer of choice.
Yahoo
3 hours ago
- Business
- Yahoo
AMD Shares Climb as Ryzen Threadripper?9000 Set to Debut
July 29 - Advanced Micro Devices (NASDAQ:AMD) shares climbed about 2% on Tuesday ahead of the launch of its high?end Ryzen Threadripper 9000 Series processors, due July 31, with a starting price of $1,499. Warning! GuruFocus has detected 5 Warning Signs with AMD. The new Threadripper line is engineered for workstations, excelling at tasks such as 3D rendering and artificial intelligence. Paired with AMD's AI?optimized graphics cards, the offering delivers enterprises and content creators an end?to?end compute solution. By supplying both central and graphics processors, AMD aims to set itself apart from Intel (NASDAQ:INTC), which focuses largely on CPUs, and Nvidia (NASDAQ:NVDA), known for GPUs. Market observers say the integrated approach could win larger corporate contracts, especially as demand for AI?ready hardware continues to climb. Investors are also eyeing AMD's fiscal second?quarter results, due after markets close on Aug. 5. Analysts forecast earnings per share of $0.48 on revenue of $7.41 billion. AMD has beaten EPS estimates in six of the past eight quarters and topped revenue projections in all eight. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Business
- Yahoo
Should You Buy Advanced Micro Devices (AMD) Stock Before Aug. 5? Here's What History Says.
Key Points AMD estimates its second-quarter revenue will grow 35% year over year. AMD trades at a higher premium than the industry leader, Nvidia. Investors should avoid trying to time the market based on earnings because they have no direct correlation to stock price movements. 10 stocks we like better than Advanced Micro Devices › Advanced Micro Devices (NASDAQ: AMD) (AMD) has been a beneficiary of the artificial intelligence (AI) boom, with the stock up an impressive 94% in the past three years (as of July 28). What's even more impressive is that it has been able to do so while playing little brother to Nvidia (NASDAQ: NVDA) in the graphics processing unit (GPU) space, a key component of data centers that makes AI possible. On Aug. 5, AMD is set to report its fiscal second-quarter earnings, which many anticipate being solid. If revenue comes in around $7.4 billion, like the company estimates, it would've grown business by 35% year over year. Not too shabby at all. This anticipated earnings growth has many investors wondering whether they should buy the stock before Aug. 5 to take advantage of a potential price boost. However, history says that might not be the best thought process. Beating earnings expectations doesn't equal immediate stock price growth AMD is no stranger to beating earnings estimates. In its past 10 quarters, it has met or beaten earnings-per-share (EPS) estimates, yet there's been no consistency in how its stock price performs immediately after. This shows investors are considering more than just earnings when deciding how to value the stock. Anticipating how a stock's price will move based on earnings can often be counterproductive because the stock market doesn't behave rationally. A much better approach, if you believe in the company long-term, would be dollar-cost averaging to help offset some of the inevitable volatility. Be prepared to pay a premium for AMD's stock Whether you buy AMD shares before or after its Aug. 5 earnings, you should be prepared to pay a premium for the company. It's trading at over 43 times its forward earnings, which is higher than Nvidia, the leader in the space. AMD's premium price isn't inherently a problem, but it makes it a lot harder to justify compared to Nvidia, which is growing revenue at a much faster pace. Trading at 40 times forward earnings is also expensive, but Nvidia's revenue in its last quarter increased 69% year over year, and it's the industry leader. While the ultimate decision to invest in AMD shouldn't revolve around Nvidia, it does help put the stock's valuation into perspective. In either case, approach the stock with a long-term mindset, and don't invest based on what you anticipate the stock will do post-earnings. Should you buy stock in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Should You Buy Advanced Micro Devices (AMD) Stock Before Aug. 5? Here's What History Says. was originally published by The Motley Fool
Globe and Mail
6 hours ago
- Business
- Globe and Mail
Should You Buy Advanced Micro Devices (AMD) Stock Before Aug. 5? Here's What History Says.
Key Points AMD estimates its second-quarter revenue will grow 35% year over year. AMD trades at a higher premium than the industry leader, Nvidia. Investors should avoid trying to time the market based on earnings because they have no direct correlation to stock price movements. 10 stocks we like better than Advanced Micro Devices › Advanced Micro Devices (NASDAQ: AMD) (AMD) has been a beneficiary of the artificial intelligence (AI) boom, with the stock up an impressive 94% in the past three years (as of July 28). What's even more impressive is that it has been able to do so while playing little brother to Nvidia (NASDAQ: NVDA) in the graphics processing unit (GPU) space, a key component of data centers that makes AI possible. On Aug. 5, AMD is set to report its fiscal second-quarter earnings, which many anticipate being solid. If revenue comes in around $7.4 billion, like the company estimates, it would've grown business by 35% year over year. Not too shabby at all. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » This anticipated earnings growth has many investors wondering whether they should buy the stock before Aug. 5 to take advantage of a potential price boost. However, history says that might not be the best thought process. Beating earnings expectations doesn't equal immediate stock price growth AMD is no stranger to beating earnings estimates. In its past 10 quarters, it has met or beaten earnings-per-share (EPS) estimates, yet there's been no consistency in how its stock price performs immediately after. This shows investors are considering more than just earnings when deciding how to value the stock. Anticipating how a stock's price will move based on earnings can often be counterproductive because the stock market doesn't behave rationally. A much better approach, if you believe in the company long-term, would be dollar-cost averaging to help offset some of the inevitable volatility. Be prepared to pay a premium for AMD's stock Whether you buy AMD shares before or after its Aug. 5 earnings, you should be prepared to pay a premium for the company. It's trading at over 43 times its forward earnings, which is higher than Nvidia, the leader in the space. AMD PE Ratio (Forward) data by YCharts. AMD's premium price isn't inherently a problem, but it makes it a lot harder to justify compared to Nvidia, which is growing revenue at a much faster pace. Trading at 40 times forward earnings is also expensive, but Nvidia's revenue in its last quarter increased 69% year over year, and it's the industry leader. While the ultimate decision to invest in AMD shouldn't revolve around Nvidia, it does help put the stock's valuation into perspective. In either case, approach the stock with a long-term mindset, and don't invest based on what you anticipate the stock will do post-earnings. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
Globe and Mail
6 hours ago
- Business
- Globe and Mail
Why AMD Stock Is Jumping Today
Key Points AMD stock is rising today following news that bans on key technology exports to China have been lifted. Being able to sell its artificial intelligence (AI) processors in the Chinese market is a significant positive development for AMD. An investment firm raised its one-year price target on AMD from $175 per share to $200 per share. 10 stocks we like better than Advanced Micro Devices › Advanced Micro Devices (NASDAQ: AMD) stock is gaining ground again Tuesday. The company's share price was up 2.6% as of 12:30 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) was down 0.2%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down 0.3%. The stock had been up as much as 5% earlier in trading. AMD's stock is rising today thanks to news that the Trump administration is suspending restrictions that prevented advanced semiconductors and other technologies from being exported to China. The semiconductor stock is also getting a lift from bullish analyst coverage. AMD stock rises on China news The Trump administration has at least temporarily lifted export bans that prevented AMD from selling its high-end artificial intelligence (AI) processors into the Chinese market. The move is a concession as Trump aims to secure a trade deal with China, and it could wind up being a significant positive sales and earnings catalyst for AMD. While increased potential for a trade deal to be reached between the two countries is a beneficial development for AMD, the significance that the AI race holds for both countries along national security and economic lines suggests that substantial geopolitical risk factors are still on the table. Is AMD stock headed to $200? Before the market opened this morning, Bank of America published new coverage on AMD and raised its one-year price target on the stock from $175 per share to $200 per share. BofA's analysts think that the chipmaker's share of the central processing unit (CPU) market could rise from 20% in 2023 to 30% next year. In addition to taking market share from Intel in the CPU space, Bank of America's analysts noted that AMD's processors are commanding a 17% pricing premium compared to offerings from its competitor. While AMD's performance in the CPU space will continue to be a key factor in the company's performance, sales results for its graphics processing units (GPUs) for AI data centers will likely be the biggest factor shaping the stock's next moves when the company reports its Q2 results on Aug. 5. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Bank of America is an advertising partner of Motley Fool Money. Keith Noonan has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices and Intel. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.
