Such rapid price drops are not uncommon in the tech industry. In February 2023, AMD reduced the price of its Genoa-based EPYC 9654 processor, the predecessor to the EPYC 9754, by 30% just a few months after its launch. This pricing strategy, while favorable for buyers, can be seen as surprising and concerning for AMD.
Interestingly, AMD’s fourth-generation EPYC processors, including the EPYC 9754, have enjoyed strong sales, as evidenced by the company’s Second Quarter 2023 Financial Results. Revenue associated with the 9004 family doubled, while that of the third generation decreased. However, the Data Center segment revenue faced an 11% year-over-year drop, primarily due to soft enterprise demand and elevated cloud inventory levels for some customers.
