Intel, AMD, and Nvidia have all revised their target shipments and expected revenue for this year, with Intel and Nvidia both making larger cuts. With the collapse of cryptocurrencies, graphics card shipments may drop by 50%, and many related manufacturers are expected to be affected. Now it is necessary to prepare for a long winter.
According to
DigiTimes, Graphics card suppliers in Taiwan estimate that graphics card shipments will drop by 40% to 50% throughout 2022, which industry insiders say will cause Nvidia’s revenue to “fall at an unimaginable speed” and that annual revenue will inevitably decline hit hard. Nvidia issued an announcement two days ago, rarely pre-disclosing the results of the second quarter of fiscal 2023. The preliminary estimate was $6.7 billion, which was much lower than the expected $8.1 billion. The rest of the year will be devoted to clearing inventory.
Intel expects full-year revenue to decline by $8 billion to $11 billion, and its full-year revenue forecast is also lowered to between $65 billion and $68 billion, with PC sales expected to drop 10 percent this year. To make matters worse, Intel’s ARC graphics card has fallen behind the original plan and has not yet been fully launched on the market. The continuously deteriorating market environment has put Intel’s ambitious GPU project in a dilemma.
As the demand for the entire consumer market is shrinking, it also affects the demand for manufacturers of MCU chips, display ICs, panels, and other related manufacturers. Elan Microelectronics, which makes MCU chips for notebook computers and controllers for touch screens, expects revenue to drop 30 percent this quarter. Chromebook shipments have also taken a major hit, and are expected to drop by 50% to 60%. On the PC side, shipments of laptops and desktops fell 10% and 15%, respectively, this year, making it difficult for both gaming and commercial products to drive sales.
Both AMD and Apple somehow sidestep the industry’s problems. AMD’s revenue in the second quarter of 2022 was $6.55 billion, an increase of 70% year-on-year and 11.3% quarter-on-quarter. Part of the growth in server and embedded processors has seized the market that originally belonged to Intel. Apple is advancing its self-developed chip plan. As the product line is fully equipped with M-series Intel x86 processors, it has not only increased its own supply but also caused Intel to lose a large number of orders. Sales of the entire Macbook product line are expected to continue to grow in 2022, with shipments reaching a record 28 million units.
