AMD Gets Another Data Center Boost From the Metaverse
After two years of a work-from-home-fueled boom, we are now in the midst of a steep downturn in PC and consumer electronics spending. Chip stocks, designers, and suppliers of the components used to make personal computing devices were crushed. Advanced Micro Devices (NASDAQ: AMD) is no exception, as its "client" segment (PCs) sank 40% year over year in the third quarter of 2022.
However, the backbone of future consumer-facing applications is now being built in earnest. Frequently referred to as the metaverse, enterprise data center construction in support of this three-dimensional virtual future is booming right now, and AMD's leading segment is soaring and largely offsetting pain elsewhere.
AMD already pre-released third-quarter 2022 earnings, so its official release showing 29% year-over-year revenue growth was no surprise. However, some more nuanced segment sales provide a clearer picture of what's going on.
Source Fool.com
