AMD slashes Q3 2022 revenue guidance by over $1 billion in preannouncement
As the PC market has weakened and the global economy remains troubled, AMD lowered revenue guidance in expectation of tough fiscal quarters ahead.
AMD might be one of the most interesting and dynamic groups on the market right now when it comes to new PC graphical and processing technologies, but it’s not exempt from a number of economic troubles affecting the world right now. The company is nearing the end of its latest fiscal quarter, and ahead of the situation, AMD has lowered its revenue guidance by a significant amount to adjust for a currently weaker PC market and struggling global economy.
AMD announced the decision to slash its revenue guidance in a Q3 2022 preannouncement on its investor relations website on October 6, 2022. Where AMD’s initial third quarter outlook was up around $6.7 billion USD, give or take $200 million, the company has now knocked that number down to around $5.6 billion. This is a significant slash particularly affected by weaker client segment review.
AMD Chair and CEO Dr. Lisa Su attributed the slash in revenue guidance for Q3 2022 to the issues with the global economy and a weakened PC market demand as a direct result:
“The PC market weakened significantly in the quarter,” Su said in a statement on the announcement. “While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain. As we navigate the current market conditions, we are pleased with the performance of our Data Center, Embedded, and Gaming segments and the strength of our diversified business model and balance sheet. We remain focused on delivering our leadership product roadmap and look forward to launching our next-generation 5nm data center and graphics products later this quarter.”
This is likely troubling to AMD investors, as the company recently had stellar quarters and a wealth of growth, especially throughout the COVID-19 pandemic when PC parts and building demand were at an all-time high. It led to the company’s gaming segment revenue growing by about 32 percent in Q2 2022. AMD also managed to surpass competing tech giant Intel in market capitalization earlier this year.
Unfortunately, the shaky global economy has affected a lot of business in this late end of 2022 and especially the tech industry. With AMD’s official Q3 2022 results coming right around the corner, stay tuned for further updates and market news, right here at Shacknews.
TJ Denzer posted a new article, AMD slashes Q3 2022 revenue guidance by over $1 billion in preannouncement