Advanced Micro Devices (AMD) gained more share in the lucrative data center market from rival Intel in the third quarter, drawing praise from analysts and boosting its stock by nearly 5%. firm on Wednesday. The company’s continued expansion into server processors has helped it escape the deepening slump in the personal computer market, which accounts for nearly a third of the company’s revenue. Bernstein analyst Stacy Rasgon wrote in a note: “(AMD) is delivering their data center story, and Intel’s demise removes some of the limitations in this story.
Santa Clara, based in California AMD’s Fourth-quarter sales forecast up 14% while falling below analysts’ estimates also contrasts with the expected drop in Intel and Nvidia.
“We expect AMD stock returns to continue, as the company’s upcoming, next-generation server CPUs are expected to outperform those of AMD,” said YipitData analyst Nathaniel Harmon. Intel product line in terms of price/performance”.
However, growth is slowing even in the data center business, echoing comments from US tech giants Amazon.com and Microsoft that inflation is decades high and consumer demand weak impacted cloud and data center spending.
The computer The industry was reeling from the recession following the outbreak of the pandemic, which put pressure on AMD’s earnings and the company also lost market share to Intel.
Business recovery seems a long way off, with CEO Lisa Su saying that AMD expects the PC market to shrink another 10% by 2023.
However, some analysts say the company is underselling products even in a weak market and is likely to raise prices next year.
“The team is significantly reducing PC consumption to help reduce channel inventory, which should help customer revenue begin to grow,” said JP Morgan analysts.
AMD shares were trading at $62.38 (approximately Rs 5,200) before the bell. They have lost more than half of their market value this year.
© Thomson Reuters 2022
