Sales Alert: AMD’s PC CPU Business Collapses 40 Percent

After AMD had always been very optimistic and didn’t want to get into the same boat as Intel, they have now been hit hard. AMD will miss its own forecast by more than $1.1 billion as the PC CPU business has collapsed massively.

The PC business is breaking down significantly

40 percent lower sales in the customer division than a year ago and even 53 percent lower sales than in the second quarter of this year, which has traditionally been a pretty weak one, significantly collapse AMD’s overall forecast. Instead of about $6.7 billion, only $5.6 billion is now expected for the past third quarter. The earlier market forecast of approximately $7 billion for the fourth quarter is also unlikely to materialize.

AMD cites weak processor sales as the main reason, as very high customer inventories lead to much lower purchases of new products. The problem of high inventory levels has recently become apparent to several major manufacturers, as well as OEM/ODM manufacturers, who all have over 100 days of inventory in their warehouses and are therefore on a lot of money stuck – and are not expecting any improvement for the time being.

AMD Outlook for Q3/2022
AMD outlook for Q3/2022 (Image: AMD)

The bottom line is that AMD won’t face a disaster, especially compared to the previous year, the company is still doing well with sales expected to increase in all areas of 29 percent, mainly thanks to the other areas that have not collapsed and are in some cases even growing – but a growth of 55 percent was expected. But the value is then 15 percent below the second quarter of this year.

AMD will present the final figures on November 1. Besides AMD, in the PC sector, anything but rosy figures are expected from Intel and Nvidia. However, both companies had recently pointed to missed targets and problems in the market, the only question left now is: by how many millions and billions will the targets be missed?

The memory manufacturers have also shown in recent weeks that the entire market is being hit, Micron, Kioxia and SK Hynix are adjusting production and spending. Only Samsung is officially unimpressed and doesn’t want to change anything, but this should only be a matter of time. Finally, the company released preliminary figures overnight, which showed stagnating sales and a significant drop in profits. So Samsung is definitely affected as well.

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