Two core companies in the PC industry, Intel and AMD, both announced their latest quarterly earnings reportsAlthough Intel’s revenue fell and lost for the first time in 30 years, while AMD’s revenue rose 70% and operating profit set a record, it will face the same problem next: declining PC sales.
After AMD released its dazzling earnings report, the stock price fell just like Intel did following its earnings report. AMD’s stock price fell 6.59%, with a current market value of $156.1 billion, and Intel’s market value of $161.7 billion, the latter surpassed once more.
The direct reason for AMD’s stock price drop is its revenue guidance for the third quarter, which is expected to be $6.7 billion, plus or minus $200 million, an increase of regarding 55% compared to the same period last year, slightly lower than analysts’ expectations. Just that the growth rate fell from 70% in the first two quarters to 55%, the stock price plummeted, and the capital market was so cruel.
AMD CEO Su Zifeng also mentioned the key to its revenue reduction, that is, the decline in PC sales. AMD’s data center processor business will still grow in the third quarter, but the PC market is more conservative.
Su Zifeng said that in the previous quarter, AMD believed that the decline in the PC business was high single digits (high single digits), but now the view is that the decline is even more, reaching the mid-teens (mid-teens / can be understood as a decline of 15%) % is still higher).
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