NVIDIA’s Navi Bomb
The battle for gaining a long-lasting market share in the highly coveted mid and high-range GPU segments won’t end with just one Vega line-up release though. A lot would depend on the timeliness and competitiveness of AMD Navi as well, which is scheduled to succeed the Vega line-up in 2018.
Gauging from AMD’s recent release history, I suspect that AMD’s Navi line-up would be released in the first half of 2018. We don’t know any technical specifications of the next-gen GPU series, so commenting on its performance would purely be conjecture on my part.
But what we do know is that the Navi line-up would be tasked to compete with Nvidia’s Volta line-up. The Volta-series GPUs, as I mentioned earlier in the article, are expected to be released by 2017-end. So for AMD to continue growing its market share, it would have to release the Navi line-up in the first half of 2018.
Failing to adhere to a strict timeline or performance gains would neutralize any material gains for AMD that its Vega line-up might score. So timeliness would again be of critical importance.
(Source: Author)
I created and attached a timeline above to provide some clarity about how the market dynamics might play out. It was made assuming that Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA) both release their upcoming products as per the aforementioned schedules, and that there isn’t any delay by any of the chipmakers, which is essentially the best case scenario for AMD. Basically AMD stands to gain market share between mid 2017 to 2017-end and a similar pattern might repeat during 2018 as well.
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Investors takeaway
I keep emphasizing on the timeliness factor as it is one area that AMD has historically lagged in. It has, many times in the past, come up with good products that were a little late to the market. So AMD was forced to slash its prices (margins) in a bid to stay competitive in the highly competitive semiconductor industry.
But for AMD to truly make a difference in the GPU segment this time around, it would have to ensure that its Vega and Navi line-ups are not only competitive in terms of performance, but also released in a timely manner. Only then, the chipmaker would be able to record sustainable market share gains in the GPU segment.
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The article Advanced Micro Devices Inc (NASDAQ:AMD) (AMD): Timely Vega and Navi Launches Could Tackle Nvidia originally appeared on amigobulls.com. Watch our analysis video on AMD
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Additional Links:
(1) http://amigobulls.com/articles/why-amd-inc-stock-should-stop-falling-now?ref=il&ref=im
(2) http://www.anandtech.com/show/11002/the-amd-vega-gpu-architecture-teaser?ref=il
(3) http://wccftech.com/nvidia-pascal-volta-gpu-leaked-2017-2018/?ref=il
