AMD Shaves Nearly $3 Billion From 2022 Revenue Target
As of early August, Advanced Micro Devices (NASDAQ: AMD) was aiming for full-year revenue of $26.3 billion. Tumbling demand for PCs and inventory reductions across the PC supply chain have thrown a wrench in those plans. The company's third-quarter revenue was more than $1 billion below its initial guidance, a miss that AMD warned about in October.
AMD now expects to produce just $23.5 billion of revenue in 2022, nearly $3 billion below its target a few months ago. The good news is that this still represents growth of 40%. The bad news is that around half this growth is from an acquisition.
AMD completed the acquisition of Xilinx in February. The additional revenue from Xilinx shows up in AMD's embedded segment. In the third quarter, embedded revenue surged 1,549% to $1.3 billion almost entirely due to Xilinx.
Source Fool.com
