Advanced Micro Devices CEO Lisa Su on Thursday marked the personal computer (PC) slowdown this year after two years of “very strong PC market”.
Su, at the chip company’s analyst day, said while a downturn is inevitable after a long period of highs, the market for high-performance and adaptive computing is “awesome”.
Research company Canalys In a note last week, demand for the consumer and education PC segments continued to slow due to market saturation and inflation concerns, after reporting that US PC shipments for the first quarter had declined. experienced a third consecutive quarter of decline.
AMD said on Thursday that it has seen a “terrible” increase in demand for cloud computing, data center chips and things used in artificial intelligence applications.
It projects gross margins above 57% for the foreseeable future and operating margins at an average of 30%. For the first quarter, the company reported a gross margin of 48% and an operating margin of 16%.
In May, AMD said it expected a non-GAAP gross margin for 2022 of about 54%, while its full-year and second-quarter revenue forecasts were higher than Wall Street estimates.
In other news, Facebook parents, Meta . Platformand chip maker AMD announced in May that it had teamed up for a mobile internet infrastructure program that would reduce base station costs to make broadband more accessible around the world.
The program, called Evenstar, was launched by Meta in early 2020 and promotes a platform called OpenRan that makes it possible for mobile network operators to mix and match hardware and software to build base stations instead of buying it all from one device manufacturer.
That gives operators more flexibility and makes equipment prices more competitive, says Gilles Garcia, chief executive officer of AMD’s data center and communications team.
© Thomson Reuters 2022
