AMD has been making significant strides in the CPU market, but its GPU division is facing some challenges, particularly with the RDNA 3 graphics cards. Recent reports indicate that AMD’s next-generation RDNA 4 GPUs, which were highly anticipated, are now rumored to be delayed until the first quarter of 2025. This delay is attributed to an oversupply of RDNA 3 graphics cards, specifically the higher-end Radeon RX 7000 series.
According to a video by the well-known leaker Moore’s Law is Dead, AMD is experiencing a substantial oversupply issue with its RDNA 3 graphics cards. The company has reportedly been unable to move its higher-end Navi 31-based GPUs, leading to the decision to push back the launch of RDNA 4. Sources have confirmed that while the lower to mid-range RDNA 3 graphics cards are selling reasonably well, the demand for the more powerful models has significantly dropped.
This situation presents a challenging landscape for AMD, especially with NVIDIA gearing up to release the next-generation GeForce RTX 5090 graphics card. The RTX 5090 is expected to outperform its predecessor, the RTX 4090, and could further diminish AMD’s position in the high-end GPU market. AMD has previously acknowledged that its ‘King of the Hill’ strategy has not yielded the desired results, leading to a shift in focus for the upcoming RDNA 4 release.
Insider information suggests that RDNA 4 will be positioned similarly to the original RDNA lineup, targeting the mid-range market with the Radeon RX 8000 series. This strategic pivot aims to allow NVIDIA to dominate the high-end and ultra-enthusiast segments while AMD focuses on providing competitive offerings in the mid-range category. The anticipated RDNA 5 is being described as a potential ‘Zen moment’ for the Radeon brand, sparking interest and speculation among tech enthusiasts.
Sources close to AMD have provided insights into the current situation. One AMD partner revealed that an internal communication indicated RDNA 4’s launch would be postponed to Q1 2025 to address the existing oversupply of RDNA 3 GPUs. Another source from a major retailer confirmed that the oversupply issue is indeed significant, with Navi 31 GPUs particularly struggling to sell. Despite some success in the lower to mid-range segment, the high-end offerings are not moving as expected.
As the GPU market continues to evolve, AMD’s strategy will be crucial in determining its future success. The company faces increasing competition from NVIDIA, which is poised to release products that could potentially overshadow AMD’s offerings. The shift in focus towards mid-range products for RDNA 4 may help AMD regain some market share, but it remains to be seen how this will play out in the competitive landscape.
With the delay of RDNA 4, AMD enthusiasts and gamers alike will be watching closely to see how the company navigates this challenging period. The future of AMD’s GPU division hinges on its ability to address the oversupply issue and successfully launch its next-generation graphics cards in a market that is rapidly changing.
