Shulou(Shulou.com)11/24 Report--

CTOnews.com, Oct. 7 (Xinhua)-- AMD's third-quarter revenue preliminary figures were about $5.6 billion, lower than the forecast of $6.71 billion, indicating that the chip recession may be much more severe than expected.

AMD shares fell 4 per cent in after-hours trading, dragging Nvidia and Intel shares down more than 2 per cent.

Su Zifeng, chief executive of AMD, said in a statement: "the PC market is significantly weak this quarter, and macroeconomic conditions have driven PC demand below expectations."

CTOnews.com learned that runaway inflation and the reopening of offices and schools have caused people to spend less on personal computers than they did during the blockade, when many people bought computers for work and study because they stayed at home.

The Philadelphia semiconductor index, which tracks the 30 largest chip companies, has fallen 36.4 per cent so far this year and is up 41.2 per cent in 2021.

"I think AMD is showing that no one is immune from the PC recession after the outbreak, and those inventory corrections are affecting the company," said Anshel Sag, a chip analyst at Moor Insights & Strategy.

Su Zifeng said AMD's data center, embedded and gaming units maintained strong growth.

AMD is the latest chipmaker to be hit by the downturn in the industry. Last week, memory chipmaker Micron warned of a tougher situation and said it would cut capital expenditure investment by more than 30 per cent in fiscal year 2023 to a total of $8 billion. Both Nvidia and Intel reported worse-than-expected earnings in their latest reports.

AMD said its third-quarter results will be officially released on November 1.

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