AMD: sales of processors and graphics cards could fall in 2023
AMD is expected to experience a sharp drop in revenue this year due to poor processor and graphics card sales figures. The situation could even get worse next year, according to several analysts.
According to a new report from Joseph Moore, market analyst at Morgan Stanley, AMD sales could be hit hard by the general decline of the PC market in 2022. He predicts that AMD revenue could drop 26% this year because of the time taken by the manufacturer to present its new generation of Zen 4 chips, which will probably only arrive on September 15.
Indeed, he suggests Intel’s 12th Gen Alder Lake processors have been extremely well received, and that most consumers haven’t had the patience to wait several more months for AMD to respond with a new architecture. The company’s situation is not expected to improve next year.
AMD sales could fall next year
Moore also predicts that the company should experience a 2% decline in revenue in 2023 and experience a relatively stable period thereafter. This corroborates information from analyst Gus Richard, who also announces that sales of AMD processors and graphics chips for client PCs should continue. decrease significantly next year.
According to Richard, AMD’s PC CPU sales will decline 6% year-over-year in 2023, while GPU revenues will decline 7%. In total, AMD will lose $675 million in revenue in 2023 compared to 2022 due to slowing demand. The American giant will also have to face stiff competition from Intel, which will also present its new Raptor Lake chips at the end of the year.
All does not look bleak for AMD, since the analyst also predicts that chip sales for Xbox Series X and S plus PS5 will reach around $1.140 billion next yearmore than previously predicted.
AMD’s corporate earnings could fare much better, however, with 55% growth over the previous year, or approximately $3.1 billion. Richard says AMD’s EPYC server processors will be “at the top of the pile next year,” which will help soften the impact of declining sales in its other market segments.
Source : Seeking Alpha
