Market Starts Saturated And Inflation, AMD Predicts Slowing PC Sales This Year

Sales of home computers are starting to fall as the market is saturated. (photo: doc. unsplash)

JAKARTA - Advanced Micro Devices Inc Chief Executive Officer Lisa Su on Thursday, June 9 marked a slowdown in sales in personal computers (PCs) this year after two years of "a very strong PC market".

Su, at the chip company's analyst day, said while the decline was reasonable after a long period of highs, the computer market for high-performance and adaptive computing was "great".

In a Reuters report, research firm Canalys said in a note last week that demand for the consumer and education PC segments has slowed further due to market saturation and concerns over inflation, after reporting first-quarter US PC shipments fell for the third straight quarter.

In contrast, AMD said last Thursday that it had seen a "tremendous" increase in demand for cloud computing, data center chips and those used in artificial intelligence applications.

The company expects gross margins of over 57% in the near term and operating margins in the mid-30s range. In the first quarter, the company reported a gross margin of 48% and an operating margin of 16%.

In May, AMD said it expects its non-GAAP gross margin for 2022 to be around 54%, while forecasting higher-than-expected full-year and second-quarter earnings for Wall Street.