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AMD Forecasts Slump in Sales Amid Decline in PC Shipments

Industry: Semiconductors
Current: Company Performance

AMD expects a decrease in sales, with PC shipments registering a continuous downward trend
With the PC market becoming weaker than expected, the company recorded a decline in the shipment of processors
The PC market reported a steep fall in shipments due to broad measures taken by manufacturers globally to correct their inventories

AMD Anticipates a Shortfall in Sales in the Forthcoming Quarters

Advanced Micro Devices Inc (AMD), one of the leading manufacturers of microprocessor products, graphics, processors, chipsets, and computing products, forecast a decline in sales in the fourth quarter of 2022. The company expects its revenue in the third quarter of 2022 to reach $5.6 billion, down from $6.5 billion in the second quarter. However, the company’s overall performance is expected to stay robust due to its diversified product portfolio. the company is devising strategies to maintain its market share with the launch of next-generation 5nm data center and graphics products during this quarter.

Adverse Macroeconomic Conditions Led to a Reduction in PC Sales

The capacity of the consumer electronic industry was under intense stress during the COVID-19 pandemic period. The rapid increase in the sales of consumer electronics, including PCs, laptops, phones, vehicles, and appliances, resulted in a widespread supply shortage. The reset is taking place after two years of supercharged growth.

The COVID-19 restrictions in the PC markets led to a considerable decrease in demand. Owing to lockdowns, China, one of the largest manufacturing markets for PCs, endured production disruption in the second quarter of 2022.

Growing global inflation and regional conflicts are also responsible for the decline in consumer spending, leading to a significant decrease in PC shipments.

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