AMD expects a significant PC sales decline as higher costs hit the market
AMD predicts a double-digit decline in PC market shipments
During its Q3 2026 earnings call, AMD confirmed that it expects a significant decline in PC market shipments in 2027 due to rising memory and component costs. Simply put, AI demand has ravaged the PC market, with memory and components becoming much more expensive. This has made PC upgrades and replacements unattractive, leading to a drop in consumer demand for new hardware.
While AMD expects a drop in PC market shipments, the company’s enterprise sector is thriving. EPYC CPU sales and Instinct AI accelerator sales are strong, and growth here is more than countering AMD’s declining PC revenues.
Looking at the market, PC sell-through slowed late in the quarter as higher memory and component costs weighed on demand. We are managing the business accordingly, aligning sell-in with sell-through to keep customer and channel inventory healthy. In 2027, we are planning for PC market unit shipments to decline by a double-digit percentage. In this environment, we expect to outperform the market as we deliver our Ryzen roadmap and grow our commercial footprint. In gaming, revenue declined 40% year over year to $773 million, primarily due to lower semi-custom sales as expected at this stage of the console cycle.
– AMD CEO Lisa Su
AMD expects to “outperform the market” when it comes to consumer PCs
AMD’s CEO says that they “expect to outperform the market” within the consumer PC environment as they “deliver on their Ryzen roadmap” and “grow our commercial footprint”. In other words, AMD expects its consumer sales to decline more slowly than its rivals. This could be due to the launch of new Zen 6 Ryzen CPUs, which could attract strong buyer interest.
AMD appears confident that it can ship a better product in 2027 than Intel. In doing so, AMD believes that it can gain market share from Intel, even as the PC market contracts. AMD either has a lot of faith in Zen 6, or little faith that Intel can deliver a better product with Nova Lake.
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