AMD Snatches More of Intel's Data Centre Market Share to Help Cushion PC Slowdown

AMD lost market share to Intel in the PC segment, which is reeling from a downturn after its pandemic boom.

AMD Snatches More of Intel's Data Centre Market Share to Help Cushion PC Slowdown

AMD expects the PC market will decline by another 10 percent in 2023

Highlights
  • AMD's 14 percent rise in fourth-quarter sales is below estimates
  • Competitor Intel's rolling collapse provided holding ground
  • AMD's next-gen server CPUs are expected to outperform Intel’s lineup
Advertisement

Advanced Micro Devices (AMD) snatched more share in the lucrative data centre market from rival Intel in the third quarter, drawing praise from analysts and sparking a near 5 percent jump in its stock on Wednesday. The company's continued expansion into server processors helped it cushion a deepening slump in the personal computer market, which makes up nearly a third of its revenue. "(AMD) is delivering on their datacentre story, and Intel's rolling collapse has removed some of the constraints on the narrative," Bernstein analyst Stacy Rasgon wrote in a note.

Santa Clara, California-based AMD's forecast for a 14 percent rise in fourth-quarter sales while below analysts' estimates also contrasted with expected declines at Intel and Nvidia.

"We expect AMD's share gains to continue, as the company's upcoming, next-generation server CPUs are expected to outperform Intel's lineup across price/performance metrics," YipitData analyst Nathaniel Harmon said.

But growth is slowing even in the data centre business, echoing remarks from US tech giants Amazon.com and Microsoft that decades-high inflation and weak consumer demand were taking a toll on cloud and datacentre spending.

The PC industry, reeling from a downturn after its pandemic boom, pressured AMD's earnings and the company also lost market share there to Intel.

A recovery in the business seems distant, with Chief Executive Lisa Su saying that AMD expects the PC market will decline by another 10 percent in 2023.

Some analysts, however, said the company was undershipping products even in a weak market and could see some upside next year.

"The team is significantly undershipping to PC consumption to help flush channel inventories, which should help client revenues to start to inflect to the upside," according to J.P. Morgan analysts.

AMD's shares were trading at $62.38 (roughly Rs. 5,200) before the bell. They have lost more than half their market value this year.

© Thomson Reuters 2022


What are the best smartphones you can buy in India under Rs. 30,000? There are a handful of options that we've discussed on this week's episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: AMD, Intel
Microsoft President Says Businesses Must Train Employees on Sustainability to Meet Climate Change Pledges
Facebook Gadgets360 Twitter Share Tweet Snapchat LinkedIn Reddit Comment google-newsGoogle News

Advertisement

Follow Us
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »