AMD is also struggling with falling demand. According to a recent report, business with PC processors has slumped noticeably.
AMD originally forecast revenue of $6.7 billion for the third quarter of 2022. But this goal will probably be missed – and by a wide margin. As the manufacturer has announced, they are now only planning sales of 5.6 billion US dollars for the quarter. A minus of almost 17 percent.
There are particular problems with the client CPUs. Compared to the same period last year, sales in this area fell by 40 percent. Compared to the second quarter of 2022 even by 53 percent. However, AMD is not alone in this. Other manufacturers in the hardware segment, including Intel and Nvidia, are also facing very similar challenges.
“The PC market weakened significantly this quarter ,” said Dr. Lisa Su, Chairwoman and CEO of AMD. “Although our product portfolio remains very strong, macroeconomic conditions have resulted in lower than expected PC demand and a significant inventory correction across the PC supply chain. We remain focused on executing our leading product roadmap and look forward to bringing our next-generation 5nm data center and graphics products to market later this quarter.”
Overall, AMD is still in pretty good shape. A sales increase of 29 percent compared to the previous year is expected across all areas. Originally, however, 55 percent was assumed. We will find out what the final numbers are on November 1st when AMD publishes the official quarterly report.
