AMD CEO confirms they are under-shipping graphics cards

[Jan]

AMD and Nvidia under-shipping graphics cards to keep prices high

AMD and Nvidia have been under-shipping graphics cards in the past few months, keeping prices from plummeting amid weakened demand due to rising inflation and a significant dip in cryptocurrency mining.

PC Gamer reports that AMD CEO Lisa Su told investors her company had been under-shipping the sell-through or consumption of GPUs between July 2022 and December 2022, and would continue to do so in the coming months.

 

[frost717]

Such disgusting tactics honestly.

 

[ghostRgg]

Such disgusting tactics honestly.

Can agree, but!

The chip production industry is extremely tight, I mean we are talking one mistake and you have to write off a few hundred million dollars. An example would be you have an order with TSMC to make you 500,000 gpu dies, but a few days before your order is complete, your competitor just dropped their latest tech, decreased their pricing and stock is ready to go.

Your product now is going to no longer fly off the shelves until demand is really high.

The latest market strategy, even if it is dirty is to not sell the whole inventory as fast as possible anymore. It's not exactly illegal and does keep these companys from just smashing the floor caused by your competitors.