AMD CEO Lisa Su admitted at a JPMorgan conference yesterday that the shortage of the silicon market has led it to focus on its high-end chips at the expense of its budget offerings. This helps explain why it hasn’t rushed to its new range of consumer APUs, but also why it’s so hard to find similar products to the Ryzen 5 3400G.
Lisa Su was answering a question about whether AMD would get more profits this year if it had more capacity. His response suggested that, like most semiconductor companies, demand was outstripping supply at the time, and so it probably was. It then becomes a matter of prioritization.
"There's a bit of a calculation that we leave without service." Su says during the call (via Looking for Alpha). "I would say, in particular, that if you look at some segments of the PC market, as part of the lower PC market, we've prioritized some of the high-end commercial SKUs and game SKUs and stuff like that."
It makes sense for AMD to focus on where it can make the most profit, but it’s still not a happy read for anyone who is trying to build a budget machine right now. We are beginning to see some system builders focused on gaming computers with integrated graphics, simply because there are so few graphics cards with which to fill the machines. It would be great if DIY players had the option to build their own $ 400 machines.
AMD is in a good financial position right now and has recently updated its guidelines from 37% year-on-year growth at the beginning of the year to 50% year-on-year growth now.
There was also good news from the conference, with Lisa Su stating, "I think you'll see that there will be more and more capacity online as we go through the next two quarters."