Advanced Micro Devices (AMD) is the latest chipmaker to be hit by the slump in the chip market after it released third-quarter profit forecasts that were about $1 billion lower than previous forecast.
AMD shares fell 4 per cent in after-hours trading, dragging Nvidia Corp and Intel Corp down more than 2 per cent after runaway inflation and the reopening of offices and schools caused people to spend less on PCs than they did during the closures.
The Philadelphia Semiconductor Index has also fallen 36.4 per cent this year, compared with an increase of 41.2 per cent in 2021.
“The PC market weakened significantly in the quarter,” Chief Executive Officer Lisa Su said in a statement, adding that PC demand was lower than expected due to macroeconomic conditions.
COVID restrictions in a critical PC market China and the Ukraine conflict are also putting pressure on chip manufacturers and are blamed for the slowdown in chip demand and supply and the weakness of the PC market.
AMD has said it expects third-quarter revenue of about $5.6 billion, compared with its August forecast of $6.7 billion, plus or minus $200 million.
The sources for this piece include an article in Reuters.