AMD issues revenue warning; shares down sharply

AMD issues revenue warning; shares down sharply

Chip manufacturer AMD has issued a revenue warning about sales for the third quarter of this year. The turnover is about 1 billion dollars lower. As a result of this revenue warning, the company’s share price fell, as did those of competing chip makers.

According to the Q3 2022 revenue warning issued by the chip manufacturer, the previous revenue forecast drops from 6.8 billion euros ($6.7 billion) to 5.7 billion euros ($5.6 billion). Reason for this revenue drop, according to AMD, lies in declining revenue from processors for the PC market.

Macroeconomic conditions

Sales in this market segment are under considerable pressure, according to the chip manufacturer. Especially because of the current macroeconomic conditions. These include high inflation and the war in Ukraine, but also less demand as employees and students return to the office or school after the pandemic. Inventory problems in the supply chain also contribute to fewer PCs and laptops being sold.

Price drop

In a reaction to the revenue warning, AMD shares fell 4 percent. Shares of competitors Intel and Nvidia also went down more than 2 percent.

AMD’s announcement is not an isolated one. Earlier, Intel, Samsung, Nvidia and Qualcomm announced disappointing quarterly results and declining revenue from processor sales. AMD’s final Q3 2022 figures will be presented on November 1.

Tip: Samsung’s profits set to dip by 25%, first decline in three years