Chip slump could be worse than expected

The chip slump could be worse than anticipated, as Reuters- Chipmaker Advanced Micro Devices Inc provided third-quarter revenue estimates that were about a billion dollars less than previously forecast.

In a statement, Lisa Su, Chief Executive Officer, said that the PC market weakened significantly in the quarter, and that macroeconomic conditions drove PC demand lower than expected.

Anshel Sag, chip analyst at Moor Insights Strategy said that AMD is showing that nobody is safe from the post-pandemic PC downturn and that those inventory corrections are also impacting the company. This appears to be a cyclical correction within a single, albeit large business unit rather than a strategic or structural one. The company expects to have revenue of about $5.6 billion in the third quarter. That compares with its forecast in August of $6.7 billion, plus or minus $200 million.

AMD said its earnings will be released on November 1.