AMD's Organic Growth Grinds to a Halt
Advanced Micro Devices (NASDAQ: AMD) will badly miss its guidance for the third quarter as the PC market hits some serious turbulence after two years of pandemic-fueled growth. AMD had previously expected to report revenue of $6.7 billion, but now it sees the top line coming in at just $5.6 billion.
It's the PC-centric client segment that's to blame. A combination of lower end-market demand for PCs and dramatic inventory adjustments by manufacturers has greatly reduced the number of processors AMD is able to sell. Client segment revenue is now expected to decline 40% year over year in the third quarter.
An apparent silver lining from AMD's preliminary third-quarter results is that the company still expects total revenue to grow by 29% year over year. The data center and gaming businesses are still doing well, at least for now.
Source Fool.com
