AMD revenue forecast disappoints on PC, data center weakness | Biden News

AMD revenue forecast disappoints on PC, data center weakness

 | Biden News

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Nov 1 (Reuters) – Chip designer Advanced Micro Devices ( AMD.O ) on Tuesday forecast fourth-quarter revenue below Wall Street estimates, saying a sluggish PC market and data center business would weigh on its sales.

Shares of the company fell 3% in trading after the bell.

AMD, which makes CPUs and graphics processors for computers, has been hit hard as inflation has hurt consumer demand for laptops and other devices, prompting electronics makers to cut orders for their chips.

That led AMD to lower its third-quarter revenue forecast by about $1 billion last month.

According to Counterpoint Research, PC shipments will decline 13% this year. They fell 19.5% in the third quarter, according to research firm Gartner.

Additionally, weaker cloud spending signaled by a slowdown at technology companies including Amazon.com ( AMZN.O ), Microsoft ( MSFT.O ) and Intel ( INTC.O ) also raised concerns about the data center market.

A growing number of chip makers including Taiwan’s TSMC ( 2330.TW ), Micron Technology ( MU.O ) and Texas Instruments ( TXN.O ) have pointed to a slowdown in demand, fueling fears of a deep downturn in the semiconductor industry next year .

The company expects current quarter revenue to be $5.5 billion, plus or minus $300 million. Analysts on average expect revenue to be $5.85 billion, according to data from Refinitiv.

Revenue at its consumer segment, which includes chips for desktops, fell 40% to $1 billion during the third quarter.

Reporting by Chavi Mehta in Bengaluru; Editing by Anil D’Silva and Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

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