AMD today pre-announced some of its third quarter earnings results, lowering its revenue projections to $5.6 billion from $6.7 billion in the quarter, a reduction of $1.1 billion. AMD also warned investors that its non-GAAP gross margin will fall to 42% from its forecast of 50%. The company cited lower-than-expected sales in the consumer PC market and significant destocking in the PC supply chain, but data center, gaming, and embedded segments still performed as expected. I said that there is.
The company continues to expand despite headwinds as AMD’s warning cuts its earnings forecast to 29% from 55% year-over-year. AMD specifically attributed the loss of revenue to lower client processor shipments and lower average selling prices (ASP). This is a problem plaguing other semiconductor makers such as Intel and Nvidia, causing inventories to swell as demand recedes.
