AMD’s PC CPUs, and GPUs shipments will decline sharply next year
It has been reported recently that, with the impact of inflation and the uncertain economic outlook and other factors, demand in the consumer electronics market is slowing rapidly, with Nvidia, AMD and Apple all planning to cut orders at TSMC. Corresponding to it are the survey reports of relevant institutions and investment companies, and it seems that the situation in the future is not optimistic.
According to Seeking Alpha, according to a new report from investment firm Northland, AMD’s CPU and GPU shipments for client PCs will decline sharply next year, but the semi-custom business is still booming, and SoC shipments for PlayStation and Xbox platforms will continue to grow.
Analysts estimate that AMD’s CPU revenue (including desktop and notebook platforms) will decline 6% year-on-year in 2023, and GPU revenue will decline 7% year-on-year, totaling about $675 million. At the same time, Xilinx’s revenue will also decline by 6% year on year. Contrary to these numbers, revenue from the console-related business will increase by 8% year on year, which also reflects the third year of the console’s life cycle, which will roughly triple in sales. In addition, AMD will still have a strong presence in the enterprise market, with revenue rising 55% year-over-year to around $3.1 billion in 2023, largely offsetting revenue declines in other segments.
Although analysts at Northland moved AMD’s stock to “outperform,” they lowered their price target to $95, reflecting concerns about a global recession. After the close on July 1, 2022, AMD stock was trading at $73.670, its lowest level over the past year. AMD shares have fallen nearly 50% over the past six months, similar to rival Nvidia.
