AMD and Intel have acknowledged that demand for personal computers (PCs) is fading and that the situation is worse than their already bleak prospects.
last week with Intel (INTC-USA) and AMD (AMD-USA) executives met, Bernstein analyst Stacy Rasgon released a research note on Monday (19), focusing on the deterioration of the PC market.
AMD and Intel PC and server processors use the x86 chip architecture.
David Zinsner, Intel’s chief financial officer, said that compared to the company’s annual PC market forecast in July, this was a further 10% deterioration from 2021. He did not offer a revised perspective.
The data center market has weakened due to weaker sales in China and a tougher macro environment, Zinsner said.
The analyst also spoke to Dan McNamara, the head of AMD’s corporate server division, who revealed that “the current PC environment is chaotic and the prospects for customers are below expectations.” outlook for the PC market In contrast, the current PC market has deteriorated by about 15%.
Rasgon has an “underperform” rating on Intel with a target price of $ 30, while AMD has an “outperform” rating with a target price of $ 135.
Intel gained 0.68% on Monday to close at $ 29.44 per share; AMD was up 0.34% to close at $ 76.77 per share.
Intel in April expected the PC market to rebound in the second half of the year. But in the months that followed, business conditions only worsened. According to IDC data, global PC shipments fell 15% in the first quarter of June, so Intel and AMD revised their PC market forecasts for the full year 2022 downward when they announced their second quarter earnings. .
Now both AMD and Intel say the overall PC market is faring worse than their revised forecasts and I’m afraid that doesn’t bode well for their business.
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