AMD recently launched its EPYC “Bergamo” 9754 CPU, boasting 128 cores and a suggested retail price of $11,900. However, within weeks of its release, the processor has been spotted in the US market for significantly less, selling for under $9,500 from reputable providers like Wiredzone and Tech-America.
Tech-America, for instance, is offering the tray version of the EPYC 9754 (100-000001234) on preorder for $9,348, which represents a substantial 21.44% discount or $2,552 off the original retail price. These discounts are particularly noteworthy for a new and in-demand product, and even larger discounts are available when purchasing 100 or more units.
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.
Additionally, two other AMD EPYC products are being closely watched: the 128-core/128-thread 9754S and the Genoa-X part, 9684X, which boasts a massive 1.152GB L3 cache. The former is priced at around $8,400 (down from $10,200) from ShopBLT, while the latter can be found for about $2,000 more (down from $14,756) at Wiredzone. These discounts are significant and contribute to AMD’s competitive positioning.
In the high-end CPU market, Intel’s Xeon Platinum 8490H processor, launched in January 2023, remains AMD’s primary competitor. However, the 8490H lags behind the EPYC 9754 with only 60 cores and 120 threads while costing nearly twice as much as AMD’s fourth-generation 128-core flagship. This significant cost difference makes AMD’s EPYC processors an attractive choice for businesses and data centers.
