AMD launched its Genoa-based EPYC 9654 in November 2022 and immediately hit the headlines as the fastest x86 processor processor on the planet with 96 cores (and 192 threads) that run at 2.4GHz and achieve a TDP of 360W.
The suggested retail price (SRP) of $11,805 makes it the most expensive AMD part ever made, and it competes head-to-head with the Sapphire Rapids-based Intel Xeon Platinum 8490H processor, which has a sticker price of $17,000.
However, we noticed that several online stores started selling the best AMD processors at a significant discount just 12 weeks after the release. wired zone sells the OEM version of the processor (100-000000789) for $8,298 with free shipping, which is almost 30% off SRP, which is both surprising and worrying for AMD.
To put that into perspective, it’s cheaper than the EPYC Genoa 9534, a 64-core processor with an SRP of $8,803; or you can buy two EPYC 9654s for the price of one Xeon Platinum 8490H and you still get the rest.
Enterprise tech specialist Dihuni claims to have nearly 200 hexanonaconta core parts available for the price slightly more expensive $8,534. These along with the like Technical America, source, BLT storethey have hundreds of AMD EPYC 9654 server parts in stock at significantly reduced prices. Even more puzzling is that at least one retailer sells refurbished EPYC 9654 with a few more done on the way to eBay (opens in a new tab).
The world’s fastest x86 processor is greatly discounted. But why?
Now, there’s nothing wrong with deep discounts, but given the chip’s exceptional performance in real-world benchmarks and huge expectations, we’re stunned. The release of Q4 2022 results – as of January 2023 – showed AMD’s operating margins declining as revenue increased, which was attributed to “higher R&D investment to support growth.”
Contracting TAM (Total Addressable Market) was one of the reasons given by rival Intel to explain why its data center and AI group (including the Xeon family, direct EPYC competitor) saw an 84% drop in profit margin. Is it possible that AMD has quietly started to shed inventory from cloud customers ahead of the likely launch of Bergamo and Genoa-X parts later this year?
Keep in mind that the processor is only part of the equation and that the 9654 performs best when paired with state-of-the-art but expensive DDR5 memory on the new SP5 platform. At a time when even hyperscalers are feeling the pinch, upgrade cycles are longer and cheaper alternatives where possible, such as the more mature but still performing EPYC Milan range of products.
What about others?
The aforementioned EPYC 9534 can be had for about $6,200which equates to a 30% discount on the 9654. Other parts, such as the more specialized, speed-optimized EPYC 9174F, have a much lower discount (less than 10%).
We did not see similar price drops with the Intel Xeon processor; for example, the Xeon Platinum 8380 is still about the same price as the MSRP of $9,359, while Intel’s most expensive part, the 8490H, at the time of this writing has about a 10% premium. (Check out the excellent EPYC 9654 review from our sister publication, Tomshardwarestill in November 2022)