AMD will see a drop in revenue due to weak processor and graphics card sales. Analysts predict that the situation will worsen next year.
A new report by Joseph Moore, a Morgan Stanley market analyst, suggests that AMD’s sales could be hurt by the general decline of the PC market in 2024. According to Moore, AMD’s revenue could drop by 26% due to the delay it took for Zen 4 to be presented. This will likely not happen until September 15.
He suggests that Intel’s 12th generation Alder Lake processors were extremely well received, and that many consumers don’t have the patience to wait for AMD to come up with a new architecture. It is unlikely that the company’s current situation will improve in the coming year.
Next year, AMD sales could plummet
Moore predicts that Moore will see a 2% drop in revenue for the company in 2023, and then a steady period. This confirms information provided by Gus Richard, an analyst who also stated that sales of AMD CPUs as well as graphics chips for client computers should continue. will see a sharp decline in the coming year.
Richard predicts that AMD’s PC CPU revenue will decline 6% in 2023 over the previous year, while GPU revenue will drop 7%.
Due to falling demand, AMD will see a $675 million drop in revenue between 2024 and 2023. Intel will present its Raptor Lake chips to the American giant at the end this year. This will put it up against stiff competition. AMD’s prospects are not grim. The analyst predicts that chip sales for Xbox Series X, S and PS5 will be around $1,140 billion next fiscal year. This is more than was previously anticipated. AMD’s corporate earnings may be better with 55% year on year growth or about $3.1 billion Richard claims AMD’s EPYC servers processors will “on top next year,” which will mitigate the effects of falling sales in other market segments.
