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AMD Vega GPU News & Update: Reason Behind Its Limited Quantity & Why Rival Nvidia Is Disregarding Competitor's Upcoming Product

by E. K. Encina / May 12, 2017 11:13 AM EDT
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The AMD Vega GPU is one of the top next-generation graphics card that consumers are fixating on, but why is there a limited supply to such a highly sought-after product? AMD is gearing up to release their latest high-end GPU dubbed the Radeon RX Vega series.

Advanced Micro Devices impressed fans with the fast HBM2 memory capabilities of the AMD Vega GPU during its announcement. Given the high expectations of this GPU, it's only natural for AMD to supply enough of their latest product line-up in order to cater to the demands of fans.

However, that might not be the case with the AMD Vega GPU since it will only be shipping less than 16,000 units, according to TweakTown. While it is surprising for AMD's highly-anticipated graphics card to ship with such a small quantity, there's a valid reason for the company's decision.

The limited supply has a lot to do with the product's defining feature, which is its utilization of HBM2 memory. The source mentioned that the HBM2 found in the AMD Vega GPU has an extremely limited supply.

The HBM2's scarcity is forcing the production costs of AMD's latest line-up to increase significantly. Since this makes the AMD Vega GPU a lot more expensive to produce, this forces AMD to limit the quantity of these graphics cards.

However, this instance isn't the reason GPU rival Nvidia is overlooking their competitor's latest product offering. According to GameDebate, Nvidia isn't exactly worried about their competition despite the threat that the AMD Vega GPU presents to them.

Nvidia CEO Jen-Hsun Huang doesn't see AMD's latest GPU range as a threat since he feels that they still have the edge over their competition. Nvidia has seen a rapid rise in their profits in the past years as their net income rose to a whopping $502 million from $208 million.

This statistic shows that Nvidia's profits increased by as much as 144%, which gives Huang the confidence to say that "competitive position is not going to change." Nevertheless, the market will have to see how the AMD Vega GPU sales figure actually does before deciding which graphics card manufacturer clearly has the competitive edge.

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