Your response tells me nothing about the errors in my calculation. AMD does not sell the cards/components to the market, but to AIBs. I have already accounted for AMD's margin. From the point the mark-up goes to AIBs and we get MSRP.
Also, it looks like you didn't look at historical GPU prices for AMD/NV. As others already pointed out, my calculation assumes horrible 40% yields too, no die harvesting for 2nd or 3rd tier 390 cards. Once those are taken into account, it's possible AMD could afford to finally manufacture a 500-550mm2 die.
The point of my analysis wasn't to get exact profit margins for AMD, but to have a ballpark idea if it's possible for them to afford a 500-550mm2 GPU. I think it is. If you disagree, provide an explanation instead of a "facepalm".