After two years of strong pandemic-fueled demand, the PC market has fallen into shambles. Global unit shipments tumbled 19.5% year over year in the third quarter, with weakness in both the consumer and business markets. Supply chain constraints have given way to bloated inventories. On the consumer side, so many new PCs were purchased recently that there's little appetite for upgrades. On the business side, a tumultuous economy has likely led to some caution on spending.

Advanced Micro Devices (NASDAQ: AMD), the No. 2 player in both the PC and server CPU markets behind Intel (NASDAQ: INTC), has not escaped the pain. When delivering its preliminary third-quarter financials on Oct. 6, AMD warned that its results would come in far below prior expectations. At the time, it kicked the can down the road in terms of its Q4 outlook, saying that it will be discussed on the third-quarter earnings call on Nov. 1.

Given the state of the PC market, Intel's weak outlook, and the fact that AMD's new Ryzen desktop chips have a pricing problem, the end of the year is going to be rough for AMD.

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Source Fool.com