AMD Profit Shrinks Due to Low Demand for PCs – Kommersant
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American microchip maker AMD reported about the fall in revenue and profit in the second quarter. The company’s revenue compared to last year decreased by 18% – from $6.55 billion to $5.36 billion. And net profit collapsed by 94% – from $447 million to $27 million.
AMD attributed the decline in key figures to a drop in sales of third-generation EPYC processors for data centers, which even a doubling in demand for fourth-generation processors could not compensate for. As a result, the revenue of this segment of the company’s business fell by 11%, to $1.3 billion. Sales of microchips for PCs turned out to be much worse – the revenue of this segment decreased by 54%, to $998 million.
However, the demonstrated results turned out to be slightly better than the forecasts of analysts polled by Refinitiv. They expected AMD’s revenue to be $5.31 billion. The company’s shares rose 3% in OTC trading immediately after the publication of the report, but then the quotes fell, and now the shares are traded only 0.5% above the close of trading on Monday.
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