AMD continues to cut spending on R&D, down 40% in the last five years

AMD is spending less and less in R&D, and that should worry people.

@anthony256
Published Tue, Aug 18 2015 9:17 PM CDT   |   Updated Tue, Nov 3 2020 12:04 PM CST

Riding back on the news that AMD has lost a considerable chunk of the discrete GPU market this quarter, this news of AMD spending less and less on research and development is not good to hear.

AMD continues to cut spending on R&D, down 40% in the last five years | TweakTown.com

AMD shares dropped 13% last Monday without any new information or reasoning behind the huge dip in share prices, but it could be a result of NVIDIA's better than expected financials, or it could be the fact that AMD has lost more market share to NVIDIA, even after the release of its first next-gen GPU in nearly two years.

Furthermore, AMD has been scaling back R&D spending over the last five years, with Pacific Crest analyst Mike McConnell chiming in, with the following: "When I talk to investors about AMD, there's some concern - I mean, we've seen a decline by close to 40% versus levels we were at in the beginning of the decade". AMD CTO Mark Papermaster has said that the PC market is shrinking, and that AMD is putting less R&D effort into that part of the business.

Papermaster said: "So it is on that next generation of CPUs starting with Zen. It is on successive generations of our graphics core next." With particular reference to its APU and GCN designs Papermaster boasted that a lot of investments have paid off in getting its APUs adopted for its game console wins. Furthermore the AMD CTO asserted that "we have a very strong roadmap for that Graphics Core Next IP going forward".

Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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