AMD and Intel have acknowledged that personal computer (PC) demand is fading and that the situation is worse than their already gloomy outlook.
last week with Intel (INTC-US) and AMD (AMD-US) executives met, Bernstein analyst Stacy Rasgon released a research report Monday (19th), focusing on the deterioration of the PC market.
The processors for AMD and Intel PCs and servers use the x86 chip architecture.
Intel Chief Financial Officer David Zinsner said that compared to the company’s annual PC market forecast provided in July, it was a further 10% deterioration from 2021. He did not offer a revised outlook.
The data center market has softened due to weaker sales in China and a tougher macro environment, Zinsner said.
The analyst also spoke with Dan McNamara, the head of AMD’s enterprise server division, who revealed that “the current PC environment is chaotic and the outlook for customers is lower than expected.” According to AMD, this is in line with the company’s previous annual outlook for the PC market In contrast, the current PC market has deteriorated by regarding 15%.
Rasgon has an “underperform” rating on Intel with a $30 price target, while AMD has an “outperform” rating with a $135 price target.
Intel edged up 0.68% on Monday to close at $29.44 per share; AMD edged up 0.34% to close at $76.77 per share.
Intel in April expected the PC market to rebound in the second half of the year. But over the next few months, business conditions only got worse. According to IDC data, global PC shipments fell by 15% in the first quarter of June, and then Intel and AMD revised down their PC market forecasts for the full year of 2022 when they announced their second-quarter earnings.
Now both AMD and Intel are saying that the overall PC market is doing worse than their revised forecasts, and I’m afraid it doesn’t bode well for their business.
