AMD has released preliminary financial third quarter results and shareholders are unimpressed. The company reported revenue of $5.6 billion, well below the $6.7 billion previously expected. Against this background, the value of AMD shares has fallen from $67 to $57 since last week. But even this is not so bad, considering how the price has collapsed since June, when it reached $108.
AMD attributes the decline in earnings to a weak PC market and increased supply. Client business fell by 53% in the quarter alone, and this is most likely due to the crypto collapse. And the refusal of Ethereum from mining with video cards only exacerbated the situation.
The same problems are observed at Nvidia and Intel. However, there is also the factor of the end of the COVID-19 pandemic, which caused a huge demand for iron. So what is happening now is quite expected and predictable market stabilization.
There is another factor that causes concern among investors – the economic situation in many regions. However, AMD still has a chance to bounce back before the end of the fiscal year, thanks to the launch of Ryzen 7000 and the imminent launch of graphics cards based on RDNA 3 chips.
