AMD revenue warning signals deep downturn in chip market, company's shares dive 4%
Views : 110
Update time : 2022-10-07 18:03:05
AMD's preliminary third-quarter revenue figure of about $5.6 billion was below estimates of $6.71 billion, suggesting the chip slump may be much worse than expected.
AMD shares fell 4 per cent in after-hours trading, dragging Nvidia and Intel shares down more than 2 per cent.
In a statement, AMD Chief Executive Officer Cecilia Su said, "The PC market was significantly weaker this quarter, with macroeconomic conditions driving lower-than-expected PC demand."
Runaway inflation and the reopening of offices and schools have led to people spending less on PCs than during the epidemic's embargo, when many people bought computers for work and study because they stayed at home.
The Philadelphia Semiconductor Index, which tracks the 30 largest chip companies, has fallen 36.4 per cent so far this year, compared with a 41.2 per cent rise in 2021.
Anshel Sag, a chip analyst at Moor Insights & Strategy, said, "I think AMD is showing that no one is immune from the PC recession after the epidemic, and those inventory corrections are affecting the company as well."
AMD's data centre, embedded and gaming divisions are maintaining strong growth, according to Sutzeffel.
AMD is the latest chipmaker to be hit by the downturn in the sector. Last week, memory chip maker Micron Technology warned that the situation was even tougher and said it would reduce its capital expenditure investment for fiscal 2023 by more than 30 per cent to a total of $8 billion. Both NVIDIA and Intel delivered much worse-than-expected earnings in their latest reports.
AMD said its third quarter results will be officially released on November 1.
