Few companies are spared the current economic slowdown that according to most experts will not subside until early 2024, as is the case of the American semiconductor company AMD. It is true that in the case of companies like this and even in the case of the big tech companies, they have come from huge results in the last two years.
In this sense, AMD obtained revenues of 4,800 million dollars in the last quarter of 2021, 49% more than in the same period of 2020 and 12% more than the previous quarter. Last year, computer sales and cryptocurrency miners They boosted the GPU market. Today, the situation is quite different.
Although profits are being generated – thanks in part to better sales in the data center and in the video game sector – they are down 93%. According to data from AMD, the company made $66 million in profit in the third quarter, on about $5.6 billion in revenue. A figure that worsens those of the third quarter of last year, where its profits were 923 million. And all this despite the good data on demand for server chips Genoa that remains stable
AMD is clear: the problem is the weakening of the PC market and inventory reduction throughout the PC supply chain. The company expects a further slowdown in the PC market in the fourth quarter of the year and a decline in gross margin to 52%, compared to 54% forecast at the end of the second quarter.
Silver lining: the business of cloud computing and video games
Of course, the company has experienced an increase in some areas, in fact it hopes continued growth in the cloud computing business. Also, while the gaming GPU market isn’t at its best either, it rose 14% to $1.6 billion, thanks to “higher sales of semi-custom products.” Or what is the same, chips for consoles such as PlayStation 5, Xbox Series S and X, and Steam Deck.
The company has experienced an increase of 45% per year in its data center division, where its epyc chips. As well as its integrated business that has received a big boost thanks to the acquisition of Xilinx.
In the database segment, AMD also acquired the startup Pensando this year for $1.9 billion, while segment revenues continue to grow at a very rapid rate of 45% per year.
AMD’s hopes are pinned on its upcoming releases. On November 10 it will announce its new generation of processors. And soon it will do the same with a new architecture for its GPUs. According to AMD CEO Lisa Su, the company expects console sales consumption to increase as the holiday season approaches.
