The semiconductor shortages and growing demand for computers have changed the dynamics of the PC market. Every quarter is now a growth fiscal for chipmakers and vendors, and the most lucrative segments are key to maintaining dominance. This sentiment was echoed by AMD CEO Dr. Lisa Su in an interview with CNBC. Speaking about the company’s phenomenal second quarter wherein it managed to double the revenue and triple profitability, she said that they have been focused on the “most strategic segments of the PC market”. These include notebooks, gaming notebooks, premium consumer notebooks, and commercial notebooks.
These markets are important for AMD as they have a much wider audience and volume than, say the DIY segment, and generally have a much higher demand than the contemporary desktop space, although lately even the latter has been seeing a lot of traction. Although the DIY market is now seeing most Ryzen 5, Ryzen 7 and Ryzen 9 SKUs return to official prices, the notebook space is clearly getting more attention. According to German vendor XMG, the vendor expects shipments of AMD’s Cezanne (Ryzen 5000 APUs) chips to more than triple in the last two quarters of 2021.
This just goes on to show just how invested AMD is in these OEM segments, and why you shouldn’t expect the Radeon RX 6000 graphics cards to return to MSRPs anytime soon, as they have the smallest profit margins. Most Ryzen 5000 desktop processors are already selling very close to the MSRP, but there’s no word on the RDNA 2 desktop SKUs. The Radeon RX 6700 XT which is the most well-supplied GPU from the company at the moment is still being sold for around $900, nearly twice as much as the official MSRP of $479.
In the aftermath of the exceptional Q2, AMD stocks are up 12%, to an all-time high of $105, with most analysts upgrading the fabless chipmaker to a target price of $90-100. Market experts expect a similar third quarter from the company.