Lisa Sue, chief executive officer of Advanced Micro Devices, on Thursday raised the flag of recession on personal computers (PCs) this year after two years of “very strong PC market”.
On the chip company’s analyst day, Sue said the recession was normal after a long period of highs, the market for high-performance and adaptive computing was “great”.
Research firm Canalis said in a note last week that demand in the consumer and education PC segment has slowed further due to market saturation and inflation concerns, falling for the third consecutive quarter after reporting first-quarter US PC shipments.
AMD said on Thursday it had seen “unprecedented” growth in demand for things used in its cloud computing, data center chips and artificial intelligence applications.
It expects a gross margin of more than 57 per cent in the near future and an operating margin in the mid-30 per cent range. In the first quarter, the company reported 48 percent gross margin and 16 percent operating margin.
In May, AMD said it expected the non-GAAP gross margin to be around 54 percent for 2022, when full-year and second-quarter revenue projected higher than Wall Street estimates.
In other news, Facebook’s parent, meta platform and chip maker AMD announced in May that they are partnering for a mobile Internet infrastructure program that will reduce base station costs to make broadband more accessible around the world.
The program, called Evenstar, was launched by Meta in early 2020 and promotes a platform called OpenRan that allows cellular network operators to mix and match hardware and software to create a base station instead of buying everything from an equipment manufacturer.
This gives operators more flexibility and makes equipment pricing more competitive, said Gilles Garcia, an executive at AMD’s data center and communications group.
Thomson Reuters 2022