American processor manufacturer AMD (AMD-US) Chairman and CEO Su Zifeng revealed at the Financial Analysts Conference on Friday (10th) that the personal computer (PC) market will slow this year, but the market demand for chips for professional applications is high.
Recently, many investigation agencies and enterprises have warned that the overall PC market demand will slow down this year.
Market research firm Canalys data last week showed that demand in markets such as consumer and educational PCs will slow further due to market saturation and inflation concerns. U.S. PC shipments have declined for three consecutive quarters.
Market research firm IDC on Wednesday sharply revised down its 2022 global PC shipment forecast from a previous “1% contraction” to “8.2% contraction”, and warned that there are still downside risks, mainly due to weak demand and supply chain challenges . Intel (INTC-US) recently suspended recruitment in the PC chip division for at least 2 weeks.
AMD CEO Su Zifeng pointed out at the financial analyst conference that following a period of high growth, it is natural for the PC market to slow down.
However, Su Zifeng mentioned that the market demand for high performance and adaptive computing (Adaptive Computing) is still very strong.
AMD expects a significant increase in demand for cloud computing, data centers and artificial intelligence (AI) applications, which will drive the company’s future gross profit margin to over 57% and operating profit margin to around 30%.
Su Lifeng said that AI has become AMD’s biggest growth opportunity, and it is also the biggest growth opportunity in the next few years, which means that AMD will shift its next business focus from the data center to the AI field.