AMD's CPU and GPU consumer sales expected to drop next year

[Tudor Cibean]

The big picture: A reputable analyst recently lowered his revenue estimates for AMD's consumer CPU, GPU, and gaming console divisions for 2023. It makes sense that consumers will cut down on non-essential spending, such as high-end electronics, considering the increasing inflation rate and the ongoing war in Ukraine. Meanwhile, AMD's server revenue could continue to climb at an impressive rate.

According to analyst Gus Richard, AMD's desktop and laptop CPU revenue will decline by 6 percent year-over-year in 2023, while consumer GPU sales will be down by 7 percent. In total, this market segment will net the company about $675 million less than this 2022.

Friendly reminder, the PlayStation 5 and the Xbox Series X/S are all powered by AMD SoCs. Richard estimates that the company's game console revenue will only rise by $400 million, or about 8 percent YoY. This figure is significantly lower than his previous forecast, which mentioned a $740 million growth.

Meanwhile, Xilinx revenues would decline by 6 percent next year. AMD completed the acquisition of the semiconductor company, which mainly sells FPGAs and CPLDs.

AMD's enterprise revenue could fare far better though, growing by 55 percent YoY, or about $3.1 billion. Richard claims that AMD's EPYC server CPUs will be "at the top of the stack next year," helping mitigate the impact of declining sales in its other market segments.

The analyst also slightly adjusted his price target for AMD's shares from $97 to $95. The company's stock price is currently sitting at $73 after dropping by about 30 percent in the past month.

Earlier this week, we learned that AMD, Apple, and Nvidia are planning to cut their wafer orders from TSMC due to lower consumer demand for high-end electronics.

Permalink to story.

https://www.techspot.com/news/95169-amd-cpu-gpu-consumer-sales-expected-drop-next.html

 

[yRaz]

Earlier this week, we learned that AMD, Apple, and Nvidia are planning to cut their wafer orders from TSMC due to lower consumer demand for high-end electronics.

well no crap, they bleed the market dry for 2 years and blamed it on miners. And as far as "high end demand", well that's what happens when the new "high end" has a $2000 price tag and you have entry level products with the old high end's price tag.

and, honestly, $2000 800watt GPUs is absurd. Cool, yeah, but absurd.

 

[winjer]

Almost all tech companies are going into a slump after the covid restrictions and crypto boom ended.
Now they have to adjust to a normal market.

 

[passwordistaco]

AMD's predicament of not having enough capacity to meet demand is going to turn in their favor. Apple & Nvidia cut their 5nm wafers and AMD can fill more orders.

 

[MarcusNumb]

We are just coming back to the normality before the storm of covid and quarantine. AMD and Nvidia gained their great share of profits in the last 2 years, now they need to come back to earth.

 

[texasrattler]

We are just coming back to the normality before the storm of covid and quarantine. AMD and Nvidia gained their great share of profits in the last 2 years, now they need to come back to earth.

Covid ain't over. There isn't going to be a normal, at least not the way it was before.
Covid will simply evolve and it is. We will all find ways to live with covid but it will continue to disrupt our lives for years to come.

Personally I think we are just in the beginning of what covid can and will end up doing to the world. It has and will change the world forever but that's the thing, too many think it's done. I believe it's just starting.

After the summer, covid could come back in full storm, stronger. May not be a deadly virus but it can disrupt things in ways we might choose death. There are worse things than death, living in the aftermath.

So be mindful of the world, try to be a lil nicer, embrace love but more importantly enjoy the moments you have. We get one chance, make it count.

 

[punctualturn]

That "reputable" analyst seems for some rea$on to say this type of doom and gloom prognosis several times now and only against AMD.

Worse, sites like this one then repeat this nonsense, instead of posting something either more informative or perhaps *gasp* something positive about AMD, instead, we get this or the typical Nvidia fluf....

 

[zamroni111]

Almost all tech companies are going into a slump after the covid restrictions and crypto boom ended.
Now they have to adjust to a normal market.

server market stil has long backlog order.
hardware delivery used to be 2 months from purchase order but now it's 6 months.

 

[zamroni111]

That "reputable" analyst seems for some rea$on to say this type of doom and gloom prognosis several times now and only against AMD.

Worse, sites like this one then repeat this nonsense, instead of posting something either more informative or perhaps *gaps* something positive about AMD, instead, we get this or the typical Nvidia fluf....

Actually this is reasonable.
AMD alwas prefers to sell zen chips as epyc server processor than ryzen desktop processor.
desktop gpu even has much lower profitability.
64 cores epyc is $7890 while 8 cores ryzen is only $450.
and server buyers currently wants epyc over xeon due to epyc's much better performance and density.

 

[msroadkill612]

As per the subtext, the financial consequence for AMD is negligible - in fact,positive imo

There is a big AMD order backlog in the lucrative high ground of DC/HPC, where there is simply no contest for years hence.

More chip supply means an immediate chunk of strategic market share to amd & a strategically ever weakening Intel.

lean times will hurt intel far more.

 

[Dillinger]

That "reputable" analyst seems for some rea$on to say this type of doom and gloom prognosis several times now and only against AMD.

Worse, sites like this one then repeat this nonsense, instead of posting something either more informative or perhaps *gaps* something positive about AMD, instead, we get this or the typical Nvidia fluf....

I'm glad I'm not the only one who notices this on this site. They have a very anti-AMD stance. Rarely do we see any articles criticizing Intel or NVidia here. It's why I only browse here on occasion.

 

[zamroni111]

As per the subtext, the financial consequence for AMD is negligible - in fact,positive imo

There is a big AMD order backlog in the lucrative high ground of DC/HPC, where there is simply no contest for years hence.

More chip supply means an immediate chunk of strategic market share to amd & a strategically ever weakening Intel.

lean times will hurt intel far more.

tsmc euv puts pat in lisa's rear view mirror

 

[Puiu]

Covid ain't over. There isn't going to be a normal, at least not the way it was before.
Covid will simply evolve and it is. We will all find ways to live with covid but it will continue to disrupt our lives for years to come.

Personally I think we are just in the beginning of what covid can and will end up doing to the world. It has and will change the world forever but that's the thing, too many think it's done. I believe it's just starting.

After the summer, covid could come back in full storm, stronger. May not be a deadly virus but it can disrupt things in ways we might choose death. There are worse things than death, living in the aftermath.

So be mindful of the world, try to be a lil nicer, embrace love but more importantly enjoy the moments you have. We get one chance, make it count.

After 2-3 years of very high PC/laptop sales because of working from home and schools being closed, the market was bound to correct itself and demand to slow down.

 

[texasrattler]

After 2-3 years of very high PC/laptop sales because of working from home and schools being closed, the market was bound to correct itself and demand to slow down.

Sure demand will slow. Shortages will n are happening. If a recession does happen jn the US, that will change everything.

 

[Puiu]

Sure demand will slow. Shortages will n are happening. If a recession does happen jn the US, that will change everything.

if a recession does happen it will be much more mild than the 2008 one.