{"id":8233,"date":"2022-10-10T09:23:03","date_gmt":"2022-10-10T09:23:03","guid":{"rendered":"https:\/\/blog.bwgamespot.com\/index.php\/2022\/10\/10\/amd-stock-plunges-as-it-admits-that-pc-demand-just-isnt-as-high-as-it-once-was\/"},"modified":"2022-10-10T09:23:03","modified_gmt":"2022-10-10T09:23:03","slug":"amd-stock-plunges-as-it-admits-that-pc-demand-just-isnt-as-high-as-it-once-was","status":"publish","type":"post","link":"https:\/\/blog.bwgamespot.com\/index.php\/2022\/10\/10\/amd-stock-plunges-as-it-admits-that-pc-demand-just-isnt-as-high-as-it-once-was\/","title":{"rendered":"AMD stock plunges as it admits that PC demand just isn’t as high as it once was"},"content":{"rendered":"

AMD has released a preliminary third quarter earnings report<\/a>, and Wall Street isn\u2019t happy. The company reported quarterly revenue of $5.6 billion, which is well below its previous estimate of $6.7 billion. At the close of trade on October 7, stocks of the company were down nearly 14%<\/a>. Brutal.<\/p>\n

AMD attributes the decline to the weak PC market and greater than expected inventories. AMD\u2019s client business saw a huge 53% drop in revenue from last quarter alone! That\u2019s got to hurt.<\/p>\n

The same factors led Intel and Nvidia to issue poorer than expected earnings over recent weeks and months. The downturn in the PC market is especially jarring, though perhaps not entirely as bad as it would appear to be, following the pandemic related work from home sales boom.<\/p>\n

Economic concerns continue to weigh heavily too. Discretionary spending is falling away as economic conditions deteriorate. In the gaming segment, sales would certainly have slowed as consumers awaited the launch of AMD\u2019s Ryzen 7000-series CPUs<\/a>, with new Radeon graphics cards<\/a> to come later this year.<\/p>\n

\n
Your next upgrade<\/div>\n
\n
\n
\n

\n<\/p><\/div>\n<\/div>\n

(Image credit: Future)<\/span><\/p>\n

Best CPU for gaming<\/strong><\/a>: The top chips from Intel and AMD
\nBest gaming motherboard<\/strong><\/a>: The right boards
\nBest graphics card<\/strong><\/a>: Your perfect pixel-pusher awaits
\nBest SSD for gaming<\/strong><\/a>: Get into the game ahead of the rest<\/p>\n<\/div>\n<\/div>\n

In fact, AMD\u2019s gaming business remains a strong point. It’s still up 14% year-on-year. One would assume that 14% was heavily boosted during the early part of the year, as cryptocurrency miners bought up every GPU they could get their hands on.<\/p>\n

According to research from IDC and Gartner<\/a>, the second quarter saw one of the biggest declines in PC sales in many years. Still, according to IDC, global sales of 71.3 million PC shipments isn\u2019t far below the pre-pandemic level of 74.3 million. It’s going to be interesting to see third quarter results. Another decline will be a cause for concern, and expectations are low after a series of poor semiconductor earnings reports.<\/p>\n

AMD\u2019s fourth quarter results will include Ryzen 7000 CPU sales and a trickle of RDNA 3 graphics cards. Will they be enough to give AMD a boost? Relatively low volume would suggest not, but if the global economy begins to recover, gamers will come back with money in hand. AMD, Intel and Nvidia will be hoping that to be the case.<\/p>","protected":false},"excerpt":{"rendered":"

[#item_image]AMD stock plunges as it admits that PC demand just isn’t as high as it once was<\/p>\n

AMD has released a preliminary third quarter earnings report<\/a>, and Wall Street isn\u2019t happy. The company reported quarterly revenue of $5.6 billion, which is well below its previous estimate of $6.7 billion. At the close of trade on October 7, stocks of the company were down nearly 14%<\/a>. Brutal.<\/p>\n

AMD attributes the decline to the weak PC market and greater than expected inventories. AMD\u2019s client business saw a huge 53% drop in revenue from last quarter alone! That\u2019s got to hurt.<\/p>\n

The same factors led Intel and Nvidia to issue poorer than expected earnings over recent weeks and months. The downturn in the PC market is especially jarring, though perhaps not entirely as bad as it would appear to be, following the pandemic related work from home sales boom.<\/p>\n

Economic concerns continue to weigh heavily too. Discretionary spending is falling away as economic conditions deteriorate. In the gaming segment, sales would certainly have slowed as consumers awaited the launch of AMD\u2019s Ryzen 7000-series CPUs<\/a>, with new Radeon graphics cards<\/a> to come later this year.<\/p>\n

\n
Your next upgrade<\/div>\n
\n
\n
\n

\n<\/div>\n<\/div>\n

(Image credit: Future)<\/span><\/p>\n

Best CPU for gaming<\/strong><\/a>: The top chips from Intel and AMD
\nBest gaming motherboard<\/strong><\/a>: The right boards
\nBest graphics card<\/strong><\/a>: Your perfect pixel-pusher awaits
\nBest SSD for gaming<\/strong><\/a>: Get into the game ahead of the rest<\/p>\n<\/div>\n<\/div>\n

In fact, AMD\u2019s gaming business remains a strong point. It’s still up 14% year-on-year. One would assume that 14% was heavily boosted during the early part of the year, as cryptocurrency miners bought up every GPU they could get their hands on.<\/p>\n

According to research from IDC and Gartner<\/a>, the second quarter saw one of the biggest declines in PC sales in many years. Still, according to IDC, global sales of 71.3 million PC shipments isn\u2019t far below the pre-pandemic level of 74.3 million. It’s going to be interesting to see third quarter results. Another decline will be a cause for concern, and expectations are low after a series of poor semiconductor earnings reports.<\/p>\n

AMD\u2019s fourth quarter results will include Ryzen 7000 CPU sales and a trickle of RDNA 3 graphics cards. Will they be enough to give AMD a boost? Relatively low volume would suggest not, but if the global economy begins to recover, gamers will come back with money in hand. AMD, Intel and Nvidia will be hoping that to be the case.<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":8234,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[20],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.bwgamespot.com\/index.php\/wp-json\/wp\/v2\/posts\/8233"}],"collection":[{"href":"https:\/\/blog.bwgamespot.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.bwgamespot.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.bwgamespot.com\/index.php\/wp-json\/wp\/v2\/comments?post=8233"}],"version-history":[{"count":0,"href":"https:\/\/blog.bwgamespot.com\/index.php\/wp-json\/wp\/v2\/posts\/8233\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.bwgamespot.com\/index.php\/wp-json\/wp\/v2\/media\/8234"}],"wp:attachment":[{"href":"https:\/\/blog.bwgamespot.com\/index.php\/wp-json\/wp\/v2\/media?parent=8233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.bwgamespot.com\/index.php\/wp-json\/wp\/v2\/categories?post=8233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.bwgamespot.com\/index.php\/wp-json\/wp\/v2\/tags?post=8233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}