AMD (Advanced Micro Devices) Inc. is a US-based multinational semiconductor company that is famous for manufacturing computer processors and graphics card units. The company has witnessed tremendous sales in the last few years as a number of computer manufacturers use its chipsets and GPUs for their devices. However. this year, AMD’s sales are predicted to decline significantly as a result of comparatively lower CPU and graphics card sales. Furthermore, a handful of experts predict that things might deteriorate further for AMD during the upcoming year.
In recent research, industry analyst Joseph Moore of Morgan Stanley predicted that the overall downturn in the PC market in 2022 could have a significant negative impact on AMD’s sales. Due to the manufacturer’s delayed introduction of its new Zen 4 chip generation, which won’t likely arrive until September 15th, he projects that AMD revenue could decline by as much as 26% this year.
AMD’s Sales to Decline Amid Dwindling Demand
In fact, he further asserts that Alder Lake CPUs from Intel’s 12th generation has received overwhelmingly positive reviews and that most buyers lack the patience to wait a few more months for AMD to respond with a new design. Therefore, the company’s position is not projected to improve next year.
Additionally, according to Moore, the company’s sales will drop by 2% in 2023 before remaining largely flat. Gus Richard, an analyst, also stated that AMD processor and graphics chip sales for client PCs should continue.
Richard predicts that 2023 will see a 6% year-over-year decline in PC CPU sales for AMD and a 7% decline in GPU sales.
Due to dwindling demand, AMD will have a $675 million revenue loss in 2023 compared to 2022. The American behemoth will also be facing fierce competition from Intel, which will close the year by releasing its new Raptor Lake CPUs.
Fortunately, on the brighter side, the analyst forecasts that processor sales for the Xbox Series X and S, as well as the PS5, will tally around $1,140 billion next year, which is higher than expected. However, we will have to wait and see if it really matters.
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