Weaker than expected PC demand has resulted in declining sales
Published: 7th October 2022 | Source: AMD | Author: Mark Campbell
AMD slashes its Q3 earnings forecast by $1 billion
Q3 was expected to be a time of record profits for AMD, with the company expecting $6.7 billion in total revenue. Now, AMD has confirmed that they now expect $5.6 billion in revenue this quarter, citing lower than expected client CPU sales.
With these lower earnings also comes lower than expected margins for AMD, with the company now expecting 50% non-GAAP margins instead of their previously expected 54%. Previously, AMD expected its revenue to increase 55% year-over-year in Q3 2023, but now they expect a 29% year-over-year increase in revenue.
Things aren't going that badly for AMD
While a $1 billion revenue decrease is massive, it is worth remembering that AMD expects their Q3 revenue to increase by 29% year-over-year. That's not a bad position for AMD, and it is worth noting that AMD's new Ryzen 7000 series processors have not been available for long enough to have a huge impact on their Q3 revenues. AMD's Q3 earnings call is will be hosted on November 1st 2022.
Below is what AMD's Chair and CEO Lisa Su had to say about their reduced Q3 earnings expectations.
The PC market weakened significantly in the quarter, While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain. As we navigate the current market conditions, we are pleased with the performance of our Data Center, Embedded, and Gaming segments and the strength of our diversified business model and balance sheet. We remain focused on delivering our leadership product roadmap and look forward to launching our next-generation 5 nm data center and graphics products later this quarter.
While AMD's client segment has had a weaker than expected quarter, AMD expects to see growth in their Data Center and Embedded divisions. AMD sill discuss their Q3 earnings in more detail on November 1st 2022.
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