AMD is constantly reporting a decline in revenue and this news is leading to a cause for concern for both investors and consumers alike as this shows uncertainty in the PC hardware market.
According to AMD’s preliminary financial report, it amassed a revenue of $5.6 billion which is a far cry from its previous estimate of $6.7 billion.
If that wasn’t bad enough for the company in red, it recorded a fall of 14% in its stock price when the market closed on the 7th of October. You can analyze the current trend on Nasdaq.
While there are many speculations regarding the steep decline but AMD claims it is attributed to the slow-moving PC market which has caused the company to hoard extensive inventory.
If we take a look back at the previous quarter, it recorded a massive 53% drop in revenue.
However, it isn’t just AMD that has been hemorrhaging in terms of finances, both Nvidia and Intel also recorded a steep decline in their quarterly revenue; however, their situation doesn’t appear to be as dire as AMD’s.
However, while the numbers on paper appear to be quite dismal, it is important to note this decline is in respect to the inflated numbers during the pandemic and crypto boom which led to a massive demand for PC components; thus, these companies saw huge numbers in their financial reports.
As the demand normalizes due to the fact people are returning to work in their offices and crypto is no longer profitable to mine, the forecasts are coming down to a normal state. Furthermore, the economic condition of each and every country is in a vulnerable state, consumers aren’t particularly spending on these segments of goods.
However, AMD is still relatively doing fine in the industry as it is 14% up compared to the year prior. Nonetheless, this year’s second quarter has still marked the biggest decline in sales within the PC industry.
Given the next quarter will include the sales from Ryzen 7000 processors and RDNA 3 graphic cards, we are expecting AMD to score better numbers.
In the meantime, you can read about the software error that led to AMD’s CPU automatically overclocking.
