AMD flags slow market for PCs in 2022

ADVANCED Micro Devices (AMD) chief executive officer Lisa Su on Thursday (Jun 9) flagged a slowdown in personal computers (PC) this year after 2 years of a "very strong PC market".

Su, at the chip company's analyst day, said while the downturn was natural after a long period of high, the market for high performance and adaptive computing was "great".

Research firm Canalys said in a note last week that demand for consumer and education PC segments has further slowed due to market saturation and inflation concerns, after reporting first-quarter US PC shipments underwent a third consecutive quarter of decline.

AMD said on Thursday it has seen a "tremendous" increase in demand for its cloud computing, data centre chips and those used in artificial intelligence applications.

It expects gross margin of over 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 a gross margin of 48 per cent and operating margin of 16 per cent.

In May, AMD said it expected non-GAAP gross margin for 2022 to be about 54 per cent while forecasting full-year and second-quarter revenue higher than Wall Street estimates. REUTERS