Even if the PC market weren't in shambles, Advanced Micro Devices (NASDAQ: AMD) would likely be having a tough time selling CPUs. While its Ryzen line of CPUs has been a blockbuster success since it first launched in 2017, the company has missed the mark with its latest Ryzen 7000 series. Intel's Raptor Lake processors provide better performance overall, and AMD's decision to require pricey DDR5 memory makes the cost of building a Ryzen-based system higher than it could be.

On top of that competitive disadvantage, demand for PCs is abysmal right now. Global PC shipments dropped 29% in the first quarter from the prior-year period, according to IDC, and it may be a while before inventory levels come down enough for shipments to return to growth.

This conglomeration of factors led AMD to report a stunning 65% year-over-year revenue decline for its client segment in the first quarter. Despite AMD's market share being lower than that of Intel, the company performed much worse than its larger rival. Intel posted a 38% revenue slump for its own client computing segment in the first quarter.

Continue reading

Source Fool.com