AMD falls short of Q3 expectations…”The impact of decreasing demand for PC and cryptocurrency mining”
Foreign media, including CNBC, reported on the 1st that AMD, a semiconductor company, announced its third-quarter earnings that fell short of market expectations.
AMD reported sales of $5.57 billion in the third quarter, up 29 percent from the same period last year.
However, this performance fell short of the market forecast of $5.62 billion.
Net profit was $66 million, down 93% from the same period last year.
The sharp drop in net profit was due to the acquisition of chip maker Xylings for $49 billion in February.
AMD CEO Lisa Su said, “The performance in the third quarter was lower than our expectations due to the weakening of the PC market and a massive reduction in inventory across the PC supply chain.”
He also said he will be able to get out of the inventory glut within this year, adding, “We will be able to achieve better results in the fourth quarter.”
Last year, AMD recorded the highest performance ever as consumers purchased a large number of PCs due to the influence of COVID-19 and mining demand exploded due to the booming cryptocurrency market.
However, foreign media reported that PC demand and cryptocurrency mining demand have plummeted this year, affecting performance.
By sector, sales in the corporate data center sector rose 45% year-on-year to $1.6 billion, while sales in the PC sector fell 40% from last year to $1 billion.
Game sales reached $1.63 billion, up 14% year-on-year, and matched market forecasts.
AMD will unveil a new architecture for next-generation processors and GPUs this month.
AMD’s stock price fell 0.67% to $59.66 in regular trading ahead of the earnings announcement, but rose about 4% in after-hours trading after the earnings announcement, exceeding $62.