AMD launched its Genoa-based EPYC 9654 processor again in November 2022 and it instantly grabbed the headlines because the quickest x86 CPU on the planet because of its 96 cores (and 192 threads) that run at 2.4GHz and rock a TDP of 360W. 

Its instructed retail value (SRP), $11,805, implies that it’s AMD’s most costly half ever produced and it goes face to face towards the Sapphire Rapids-based Intel Xeon Platinum 8490H and its $17,000 sticker value.

What we’ve observed although is that a number of on-line retailers have resorted to promoting AMD’s best processor at a steep low cost solely 12 weeks or so after launch. Wiredzone sells the OEM model of the CPU (100-000000789) for $8,298 with free delivery, that’s a close to 30% low cost off the SRP, which is each shocking and worrying for AMD. 

To place this in perspective, that is cheaper than the EPYC Genoa 9534, a 64-core processor that has an SRP of $8,803; it’s also possible to purchase two EPYC 9654 for the worth of 1 Xeon Platinum 8490H and nonetheless get some change.

Company tech specialist Dihuni claims to have practically 200 of those hexanonaconta-core components obtainable at a barely costlier $8,534. These, along with the likes of Tech-America, Compsource, ShopBLT, have tons of of AMD EPYC 9654 server components in inventory at deeply discounted costs. Much more puzzling, not less than one retailer is promoting refurbished EPYC 9654 with a couple of extra having made their method on eBay (opens in new tab).

World’s quickest x86 CPU will get huge value reduce. However why?

Now there’s nothing fallacious with deep reductions however given the distinctive efficiency of the chip in actual life benchmarks and large expectations pinned on it, we’re dumbfounded. The earnings launch for This fall 2022 – from January 2023 – confirmed that AMD working margins had been dropping as income elevated, one thing that it attributed to “increased R&D investments to assist progress”.

A contracting TAM (Whole Addressable Market) was one of many causes given by archrival Intel to elucidate why its datacenter and AI group (which incorporates the Xeon household, EPYC’s direct competitor) noticed an 84% drop in its revenue margins. Might or not it’s that AMD has quietly began to do away with stock from cloud prospects forward of the possible launch, later this yr of Bergamo and Genoa-X components?

It is very important keep in mind that the CPU is just a part of the equation and that the 9654 works finest when paired with bleeding-edge however costly DDR5 reminiscence as a part of the brand new SP5 platform. At instances when even hyperscalers are feeling the pinch, improve cycles are usually longer and the place attainable, cheaper options, just like the extra mature however nonetheless succesful EPYC Milan product vary.

What about others?

The aforementioned EPYC 9534 could be had for about $6,200, which matches the 30% low cost of the 9654. Different components such because the extra specialist, speed-optimised EPYC 9174F, have a a lot decrease low cost (lower than 10%). 

We didn’t see comparable drops in value throughout the board for Intel Xeon processor; for instance, the Xeon Platinum 8380 nonetheless instructions roughly the identical value as its instructed retail value of $9,359 whereas Intel’s most costly half, the 8490H, truly instructions a premium of about 10% on the time of writing. (Take a look at the excellent assessment of the EPYC 9654 posted by our sister publication, Tomshardware, again in November 2022.)