AMD Suffers From Weaker Computer Market

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The American chip company Advanced Micro Devices (AMD) says it achieved less good results than expected in the third quarter due to the weakening market for computers.

The company’s turnover increased. On an annual basis, it will increase by 29 percent to $5.6 billion. According to the company from Santa Clara, California, this is mainly due to a greater demand for chips for data centres and game computers.

For the fourth quarter, AMD forecasts revenues of approximately $5.5 billion, with a bandwidth of $300 million, more or less. AMD had already reported preliminary figures at the beginning of October and had warned of weakness in the PC market.

Net profit plummeted to $66 million in the past period from $923 million in the third quarter of 2021. According to AMD, this was mainly the result of a write-down on the acquired industry peer Xilinx and higher research costs.

The falling demand for computer hardware does affect more manufacturers. Chip producer Intel, among others, had to adjust its turnover expectations, and Microsoft saw a decrease in the number of licenses sold.