AMD has been experiencing a rollercoaster ride with its GPU business. While the company has been dominating the CPU market, its GPU division has been struggling for years. Now, a new challenge emerges: an oversupply of RDNA 3 graphics cards. This has forced AMD to push back the launch of its next-gen RDNA 4 architecture to Q1 2025, according to industry leaker Moore’s Law is Dead (MLID).
MLID reports that RDNA 4 offers significantly better price/performance compared to RDNA 3, but the current market saturation with Radeon RX 7000 series cards necessitates the delay. Multiple sources have confirmed a massive oversupply of RDNA 3 GPUs, particularly the higher-end Navi 31-based models. While mid-range cards are selling reasonably well, the high-end GPUs are struggling to move.
This situation puts AMD in a precarious position, especially with NVIDIA poised to unleash its next-gen GeForce RTX 5090. This graphics card is rumored to surpass the already powerful RTX 4090, potentially further eroding AMD’s market share.
Acknowledging the challenges, AMD has reportedly shifted its strategy for RDNA 4, aiming for a mainstream GPU release. The company plans to mirror the approach taken with RDNA 1, focusing Radeon RX 8000 series cards on the mid-range segment while conceding the high-end and ultra-enthusiast market to NVIDIA.
AMD is placing its hopes on RDNA 5, which is expected to be a game-changer for Radeon. Until then, the company will have to weather the storm of oversupply and NVIDIA’s dominance. MLID’s sources suggest that AMD’s next-gen Navi 48 GPU, based on the RDNA 4 architecture, is still in development, and the company is working to address the current challenges. It remains to be seen whether AMD can regain its footing in the GPU market and deliver a compelling competitor to NVIDIA’s upcoming GeForce RTX 5090.
