In a filing with the U.S. Securities and Exchange Commission (SEC) at the close on Thursday, chipmaker AMD disclosed that revenue from its client computing division is facing significantly lower revenue amid a sluggish macro economy. The expected pressure. Previously, the company had forecast 55% annual growth in its Q2 2022 report, but the latest warning data submitted speculates that it can only achieve 29% annual revenue growth in Q3 2022.
WCCFTech points out that AMD is the second of the three major US chip giants to do so.
"Earlier this year, Nvidia took a similar approach to cushion the psychological impact on investors before revealing a stunning revenue decline report. As a negative archetype, Intel, on the other hand, was heavily criticised by analysts for dropping a heavy bomb on the market."
AMD’s preliminary report shows that the company now expects revenue of $5.6 billion in the 2022 Q3 fiscal quarter. Ahead of Thursday’s filing, AMD had given guidance at the end of last quarter’s earnings report with a $6.7 billion estimate (complemented by a strong 54% gross profit).
The sluggish Q3 revenue was largely attributable to weak performance in AMD’s customer segment, which covers the CPU business for traditional desktops and laptops. In contrast, sectors such as data centers posted stronger year-over-year performance (although it was flat or down sequentially).
AMD CEO Dr. Su Zifeng blamed poor macroeconomic conditions and supply chain adjustments for the revenue shortfall. On the other hand, the overall bearish PC market also caused AMD to bear higher inventory management and other costs (an increase of 1.6%). One hundred million U.S. dollars).
Analysts have been considering a correction since early 2022, and Su Zifeng also outlined:
"The PC market weakened significantly during the quarter, and while AMD's product portfolio remains very strong, PC demand driven by macroeconomic conditions was weaker than expected and the entire PC supply chain is experiencing an inventory correction in response. While responding positively to the current market conditions, we are pleased with the performance of our data centre, embedded and gaming divisions, as well as the strength of our diversified business model and balance sheet. AMD remains focused on delivering an industry-leading product roadmap and looks forward to launching next-generation 5nm data centre and graphics products later this quarter."
It is reported that after the acquisition of FPGA giant Xilinx (Xilinx), AMD’s embedded division’s revenue rose 1549%. This year, though, the company has also added more than $2 billion in debt to its balance sheet.
Shares in the company fell as much as 6% on the day (it has now narrowed to 3%), while AMD has lost 55% of its market value year-to-date – investors ripped apart on rising interest rates and a stronger dollar, and the same factors have also weighed heavily on tech Exports of companies have had an impact.
