Home AMD: Revenue, margin to shrink more than expected
News

AMD: Revenue, margin to shrink more than expected

Cyril Kowaliski
Disclosure
Disclosure
In our content, we occasionally include affiliate links. Should you click on these links, we may earn a commission, though this incurs no additional cost to you. Your use of this website signifies your acceptance of our terms and conditions as well as our privacy policy.

Alas, poor AMD. We already knew PC shipment forecasts for the third quarter weren’t looking too good. Now, AMD has announced that its third-quarter revenue and margin will both be lower than anticipated—quite substantially so, in fact.

AMD previously expected its revenue to decrease by "1 percent, plus or minus 3 percent" from the second quarter to the third. Now, AMD says Q3 revenue will be down "approximately 10 percent sequentially." The chipmaker also warns that its gross margin is going to be "approximately 31 percent," well below the previous forecast of around 44%.

As you’d expect, AMD says sluggish market conditions led to the revised estimates. The company bemoans "weaker than expected demand across all product lines caused by the challenging macroeconomic environment." Addressing the huge gross margin slump, AMD blames an "inventory write-down of approximately $100 million due to lower anticipated future demand for certain products." The chipmaker goes on to say:

Third quarter gross margin was also negatively impacted by weaker than expected demand, which contributed to lower than anticipated average selling prices (ASPs) for the company’s Computing Solutions Group products and lower than expected utilization of its back-end manufacturing facilities.

This will be the second time in a row AMD misses estimates this year. After posting a net loss in Q1, the company said Q2 revenue would go up by "3 percent, plus or minus 3 percent." However, Q2 revenue actually ended up declining by 11%. The fact that AMD’s third-quarter sales will be so much lower than the already lower-than-anticipated Q2 results definitely seems like bad news for the company.

We’ll find out the full extent of the damage on October 18, in any case. That’s when AMD plans to disclose its full third-quarter results to the public.

Latest News

Ripple Dumps 240 Million XRP Tokens Amid 17% Price Decline
Crypto News

Ripple Dumps 240 Million XRP Tokens Amid 17% Price Decline

Crypto Expert Draws A Links Between Shiba Inu And Ethereum
Crypto News

Crypto Expert Draws Link Between Shiba Inu And Ethereum

The founders of the second-largest meme coin, Shiba Inu, have been a mystery. However, many people within the crypto industry have made some probable suggestions regarding the coin’s fundamentals. Del...

The Lucrative FTX Bankruptcy Trade and Ongoing Legal Battle
Crypto News

The Lucrative FTX Bankruptcy Trade and Ongoing Legal Battle

The FTX cryptocurrency exchange crash in November 2022 left a trail of aggrieved investors and customers who had their funds frozen due to the complex bankruptcy case.  However, the collapse...

Bitcoin (BTC) Price Set to Enter “Danger Zone” – Time to Back-Off or Bag More Coins?
Crypto News

Bitcoin (BTC) Price Set to Enter “Danger Zone” – Time to Back-Off or Bag More Coins?

SNB to Kick Off Rate Cut Cycle Sooner Than Expected
News

SNB to Kick-Start Rate Cut Cycle Sooner Than Expected

Top Crypto Gainers on 18 March – AVAX and RNDR
Crypto News

Top Crypto Gainers on 18 March – AVAX and RNDR

smartphone security organization
Community Contributions

How to Successfully Tackle Smartphone Security in Your Organization