After AMD had always been very optimistic and didn't want to get caught up in the same waters as Intel, they have now been hit hard. AMD will miss its own forecast by more than 1.1 billion US dollars because the PC CPU business has collapsed massively.
The PC business collapses significantly
40 percent less sales in the client division than a year ago and even 53 percent less sales than in the second quarter of this year, which is traditional is actually a rather weak one, AMD's overall forecast will collapse significantly. Instead of around 6.7 billion US dollars, only 5.6 billion US dollars are now expected for the past third quarter. The previous market forecast of around 7 billion US dollars for the fourth quarter is also unlikely to be met.
AMD cites weak processor sales as the most important reason, the very high customer inventories lead to a much lower purchase of new products. The problem of the high inventory level has recently become clear to various large manufacturers as well as OEM/ODM manufacturers, all of whom have inventory in the warehouses for well over 100 days and are therefore sitting on a lot of tied up money – and are not expecting any improvement for the time being.
AMD Outlook for Q3/2022 ( Image: AMD)The bottom line is that AMD will not experience a disaster, especially compared to the previous year, the company is still doing well with an expected increase in sales across all areas of 29 percent, mainly thanks to the other areas that have not collapsed and are even growing in some cases could – but 55 percent growth was expected. But the value is then 15 percent below the second quarter of this year.
AMD will present the final figures on November 1st. In addition to AMD, anything but rosy figures are expected from Intel and Nvidia in the PC sector. However, both companies had recently pointed out missed targets and problems in the market, the only question that currently remains is: by how many millions and billions will the targets be missed?
In the last few weeks, memory manufacturers have also explained that the entire market is affected. Micron, Kioxia and SK Hynix are making adjustments to production and expenditure. Only Samsung is officially unimpressed and doesn't want to change anything, but this should only be a matter of time. Finally, during the night, the company issued the preliminary figures, which showed stagnant sales and a significant drop in profits. So Samsung is definitely affected too.