Processors and graphics card sales could plummet in 2023

AMD is expected to experience a significant drop in revenue this year due to poor processor and graphics card sales. According to several analysts, the situation could get even worse next year.

According to a new report from Joseph Moore, a market analyst at Morgan Stanley, AMD’s sales could be hit hard by the general decline in the PC market in 2022. He predicts that AMD revenue could fall by 26% this year due to the time it has taken the manufacturer to present its new generation of Zen 4 chips, which will probably not arrive until September 15th.

Indeed, he suggests that Intel’s 12th-generation Alder Lake processors have been extremely well received and that most consumers have not had the patience to wait several more months for AMD to respond with a new architecture. The company’s situation is not expected to improve next year.

AMD sales could fall next year

Moore also predicts that the company will experience a 2% decline in revenue in 2023 and a relatively stable period thereafter. This corroborates information from analyst Gus Richard, who also announced that sales of AMD processors and graphics chips for client PCs should continue. decline sharply next year.
According to Richard, AMD’s PC CPU sales will fall 6% year-over-year in 2023, while GPU revenues will fall 7%.

In total, AMD will lose $675 million in revenue in 2023 compared to 2022 due to declining demand. The American giant will also face stiff competition from Intel, which will also present its new Raptor Lake chips at the end of this year. All is not looking bleak for AMD, as the analyst predicts too chip sales for Xbox Series X and S plus PS5 will reach about $1,140 billion next year, more than previously predicted. However, AMD’s corporate earnings could do much better, with 55% year-on-year growth, or approximately $3.1 billion Richard says AMD’s EPYC server processors will be “on top next year,” which will help mitigate the impact of declining sales in the other market segments.