AMD slashes Q3 earnings forecast as Client revenue declines
Weaker than expected PC demand has resulted in declining sales
Published: 7th October 2022 | Source: AMD |
AMD slashes its Q3 earnings forecast by $1 billion
Q3 was expected to be a time of record profits for AMD, with the company expecting $6.7 billion in total revenue. Now, AMD has confirmed that they now expect $5.6 billion in revenue this quarter, citing lower than expected client CPU sales.
With these lower earnings also comes lower than expected margins for AMD, with the company now expecting 50% non-GAAP margins instead of their previously expected 54%. Previously, AMD expected its revenue to increase 55% year-over-year in Q3 2023, but now they expect a 29% year-over-year increase in revenue.
Things aren't going that badly for AMD
While a $1 billion revenue decrease is massive, it is worth remembering that AMD expects their Q3 revenue to increase by 29% year-over-year. That's not a bad position for AMD, and it is worth noting that AMD's new Ryzen 7000 series processors have not been available for long enough to have a huge impact on their Q3 revenues. AMD's Q3 earnings call is will be hosted on November 1st 2022.
Below is what AMD's Chair and CEO Lisa Su had to say about their reduced Q3 earnings expectations.
The PC market weakened significantly in the quarter, While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain. As we navigate the current market conditions, we are pleased with the performance of our Data Center, Embedded, and Gaming segments and the strength of our diversified business model and balance sheet. We remain focused on delivering our leadership product roadmap and look forward to launching our next-generation 5 nm data center and graphics products later this quarter.
While AMD's client segment has had a weaker than expected quarter, AMD expects to see growth in their Data Center and Embedded divisions. AMD sill discuss their Q3 earnings in more detail on November 1st 2022.
You can join the discussion on AMD's lowered Q3 earnings expectations on the OC3D Forums.
Most Recent Comments
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Originally Posted by AlienALX
Yeah AM5 not doing so well by all accounts.
I wonder if it's the stiff price of entry? Elitism is all well and good when people are in the position to play the game. Fact is right now they are not, and would be better served with more affordable products. |
I upgraded by Ryzen setup to a 5800X3D and I'm now waiting to see what the new Intel offerings offer in performance gain before I consider whether or not I upgrade my 12600K DDR4 flavoured rig.
The pricing of Zen 5 mobos and DDR5 combined have effectively stalled its launch, perhaps when some well featured cost-effective B series boards hit the shelves (and a further drop in in DDR5 prices).Quote
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Originally Posted by AlienALX
Yeah AM5 not doing so well by all accounts.
I wonder if it's the stiff price of entry? Elitism is all well and good when people are in the position to play the game. Fact is right now they are not, and would be better served with more affordable products. |
Inflation of current prices is insane. New DDR5, AM5 MB, CPUs are too expensive and not worth the upgrade, unless you badly need/wish to buy new computer or upgrade 4+ years old computer for some reason.
Zen 3 medium and top CPU lines are more than enough for gaming and creative work for next 3-5 years for most people.Quote
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Originally Posted by 23RO_UK
In a nutshell ^^^
I upgraded by Ryzen setup to a 5800X3D and I'm now waiting to see what the new Intel offerings offer in performance gain before I consider whether or not I upgrade my 12600K DDR4 flavoured rig. The pricing of Zen 5 mobos and DDR5 combined have effectively stalled its launch, perhaps when some well featured cost-effective B series boards hit the shelves (and a further drop in in DDR5 prices). |
£335 for a 7600X on OCUK. £299 for the cheapest board, and it looks like it. Bloody horrible looks like an £80 board.
https://i.imgur.com/qwSx0o6.jpg
And then the price of DDR5? yeah, I can see why sales are flailing.
This really wasn't the time for it. At all. Now you would think they would know that, just by popping out their front door or reading the news and forums etc. But nope.Quote
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Originally Posted by VladyCzech
I was an early adopter of Zen 3, switched from Intel Core 4th gen. It wasn't as expensive to upgrade to Zen 3 because of the very good DDR4 and MB prices. Already on the market for some time.
Inflation of current prices is insane. New DDR5, AM5 MB, CPUs are too expensive and not worth the upgrade, unless you badly need/wish to buy new computer or upgrade 4+ years old computer for some reason. Zen 3 medium and top CPU lines are more than enough for gaming and creative work for next 3-5 years for most people. |
Even if I shaved 10% off that ugly ass board above it would be £270. For what looks like an entry level, shaved TF board.
Now some of this is because it needs so many layers, etc. However 90% of it? is just plain, downright greed. And utter stupidity. It just smacks of politicians. IE - not living in the actual real world. But even they have no excuse with the internet now, it is very easy to see the reaction of people in a lower class bracket than you.
However that said? I have NEVER paid £300 or more for a board. The most expensive I have ever bought was my TR4 Aorus, and it was about £280, and I was peed off by that. Mostly because I paid half of that for the 1920x I bought. However, that did need tons of VRM and so on. As basically it was a server board in disguise.
It's just getting really silly. Until a couple of years ago £300 was a top end board. Like, ultra high end. Most cost under £100. Now? that has doubled and or tripled in the space of 2-3 years. So it's not inflation at all.
In a recession? the best thing to do is cut your prices. That way people will still buy from you. A sale is a sale and all that. But that isn't the way they are treating it and that will cost them big time.
I collect BMX bikes and expensive high end parts. Mostly 90s, so prices can vary. However, I also still ride BMX and have a modern bike. For 19 months? I bought nothing, as Covid was pushing prices beyond stupidity. I just mainly worked with what I had, and if I needed a modern part I would just pay RRP.
Now? haha, those prices have fallen off a cliff. So I am buying again. That said if the prices were still high? I wouldn't be able to buy anything right now.
That is how it works. Like, the Tories announced tax cuts for the rich the other day right? well the stupidity in that is that rich people get their money from the poor. And if you make the poor have to pucker up and stop spending? then as a rich man you are totally screwed. So serving yourself is a really bad idea at the moment.Quote
CSS Valid
I wonder if it's the stiff price of entry?
Elitism is all well and good when people are in the position to play the game. Fact is right now they are not, and would be better served with more affordable products.Quote