• Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

AMD Trims Q3 Forecast, $1 Billion Missing, Client Processor Revenue down 40%, Halved Quarter-over-Quarter

btarunr

Editor & Senior Moderator
Staff member
Joined
Oct 9, 2007
Messages
46,277 (7.69/day)
Location
Hyderabad, India
System Name RBMK-1000
Processor AMD Ryzen 7 5700G
Motherboard ASUS ROG Strix B450-E Gaming
Cooling DeepCool Gammax L240 V2
Memory 2x 8GB G.Skill Sniper X
Video Card(s) Palit GeForce RTX 2080 SUPER GameRock
Storage Western Digital Black NVMe 512GB
Display(s) BenQ 1440p 60 Hz 27-inch
Case Corsair Carbide 100R
Audio Device(s) ASUS SupremeFX S1220A
Power Supply Cooler Master MWE Gold 650W
Mouse ASUS ROG Strix Impact
Keyboard Gamdias Hermes E2
Software Windows 11 Pro
AMD (NASDAQ:AMD) today announced selected preliminary financial results for the third quarter of 2022. Third quarter revenue is expected to be approximately $5.6 billion, an increase of 29% year-over-year. AMD previously expected revenue to increase approximately 55% year-over-year at the mid-point of guidance. Preliminary results reflect lower than expected Client segment revenue resulting from reduced processor shipments due to a weaker than expected PC market and significant inventory correction actions across the PC supply chain.

Revenue for the Data Center, Gaming, and Embedded segments each increased significantly year-over-year in-line with the company's expectations. Gross margin is expected to be approximately 42% and non-GAAP(*) gross margin is expected to be approximately 50%. AMD previously expected non-GAAP gross margin to be approximately 54%. The gross margin shortfall to expectations was primarily due to lower revenue driven by lower Client processor unit shipments and average selling price (ASP). In addition, the third quarter results are expected to include approximately $160 million of charges primarily for inventory, pricing, and related reserves in the graphics and client businesses.



Third quarter operating expenses are expected to be approximately $2.4 billion and non-GAAP operating expenses are expected to be approximately $1.5 billion. Non-GAAP operating expenses are lower than previous expectations of $1.6 billion driven by lower variable compensation expenses in the quarter.

"The PC market weakened significantly in the quarter," said AMD Chair and CEO Dr. Lisa Su. "While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain. As we navigate the current market conditions, we are pleased with the performance of our Data Center, Embedded, and Gaming segments and the strength of our diversified business model and balance sheet. We remain focused on delivering our leadership product roadmap and look forward to launching our next-generation 5 nm data center and graphics products later this quarter."

This update does not present all necessary information for an understanding of AMD's financial condition as of the date of this release, or its results of operations for the third quarter of 2022. As AMD completes its quarter-end financial close process and finalizes its financial statements for the quarter, it will be required to make judgments in a number of areas. It is possible that AMD may identify items that require it to make adjustments to the preliminary financial information set forth above and those adjustments could be material. AMD does not intend to update any financial information prior to release of its final third quarter financial statement information, which is currently scheduled for Nov. 1, 2022.

AMD Q3'22 Earnings Conference Call
AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) on Nov. 1, 2022 to discuss its third quarter 2022 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.

View at TechPowerUp Main Site
 
Joined
Jun 21, 2021
Messages
2,623 (2.59/day)
System Name daily driver Mac mini M2 Pro
Processor Apple Silicon M2 Pro (6 p-cores, 4 e-cores)
Motherboard Apple proprietary
Cooling Apple proprietary
Memory Apple proprietary 16GB LPDDR5 unified memory
Video Card(s) Apple Silicon M2 Pro (16-core GPU)
Storage Apple proprietary 512GB SSD + various external HDDs
Display(s) LG 27UL850W (4K@60Hz IPS)
Case Apple proprietary
Audio Device(s) Apple proprietary
Power Supply Apple proprietary
Mouse Apple Magic Trackpad 2
Keyboard Keychron K1 tenkeyless (Gateron Reds)
Software macOS Ventura 13 (including latest patches)
Benchmark Scores (My Windows daily driver is a Beelink Mini S12. I'm not interested in benchmarking.)
Ah, they missed guidance by a mile so they are pre-announcing. Never a good thing.

AMD stock getting slaughtered after hours, down -4.5% right now. Tomorrow won't be a pretty day for their stock but I expect a partial rebound next week.

Must have been an agonizingly long day for Dr. Su.

:(
 
Last edited:
Joined
Apr 22, 2021
Messages
248 (0.23/day)
Su was asked ~1Q22, doing the worst scalping/mining frenzy in our history - "how is AMD" - her response: "*outstanding* year for AMD with record annual revenue and profitability." Yeah, she had stated that doing a time for many consumers were being gouged by scalpers, hunted by miners, and/or suffering from COVID lockdowns. But, Su thought it was still all "outstanding" even when she knew that many consumers were struggling and hurting.


Well, there is a happy ending after all, and Su is now concerned.

Reap what you sow!
 
Last edited:
Joined
Jul 9, 2016
Messages
1,068 (0.38/day)
System Name Main System
Processor i9-10940x
Motherboard MSI X299 Xpower Gaming AC
Cooling Noctua NH-D15S + Second Fan
Memory G.Skill 64GB @3200MHz XMP
Video Card(s) ASUS Strix RTX 3090 24GB
Storage 2TB Samsung 970 EVO Plus; 2TB Corsair Force MP600; 2TB Samsung PM981a
Display(s) Dell U4320Q; LG 43MU79-B
Case Corsair A540
Audio Device(s) Creative Lab SoundBlaster ZX-R
Power Supply EVGA G2 1300
Mouse Logitech MK550
Keyboard Corsair K95 Platinum XT Brown Switches
Software Windows 10 Pro
Benchmark Scores Cinebench R20 - 6910; FireStrike Ultra - 13241; TimeSpy Extreme - 10067; Port Royal - 13855
Maybe there will be major price cut of AM4 and AM5 in the coming months. That would be awesome
 
Joined
Feb 23, 2016
Messages
128 (0.04/day)
System Name Computer!
Processor i7-6700K
Motherboard AsRock Z170 Extreme 7+
Cooling EKWB on CPU & GPU, 240 slim and 360 Monsta, Aquacomputer Aquabus D5, Aquaaero 6 Pro.
Memory 32Gb Kingston Hyper-X 3Ghz
Video Card(s) Asus 980 Ti Strix
Storage 2 x 950 Pro
Display(s) Old Acer thing
Case NZXT 440 Modded
Audio Device(s) onboard
Power Supply Seasonic PII 600W Platinum
Mouse Razer Deathadder Chroma
Keyboard Logitech G15
Software Win 10 Pro
Su was asked ~1Q22, doing the worst scalping/mining frenzy in our history - "how is AMD" - her response: "*outstanding* year for AMD with record annual revenue and profitability." Yeah, she had stated that doing a time for many consumers were being gouged by scalpers, hunted by miners, and/or suffering from COVID lockdowns. But, Su thought it was still all "outstanding" even when she knew that many consumers were struggling and hurting.


Well, there is a happy ending after all, and Su is now concerned.

Reap what you sow!
Well... it was "Outstanding" for all the companies that benefitted - I am sure nVidia would have said the same, no? If she was asked "How are customers doing?" I am sure her answer would have been different.

"Well, there is a happy ending after all, and Su is now concerned." What is she concerned about?

"Reap what you sow" - dude what is your problem?! What is she sowing? I think AMD is doing well under leadership or I am missing something?
 
Joined
Apr 12, 2013
Messages
6,728 (1.68/day)
Well this is gonna be really bad ugly, check for Client segment ~


AMD for me was best placed to weather this storm & they got hammered, I bet this is going to be a bloodbath in the next few quarters especially for those who rely on retail consumers! Oh did I mention OPEC o_O

 

64K

Joined
Mar 13, 2014
Messages
6,104 (1.66/day)
Processor i7 7700k
Motherboard MSI Z270 SLI Plus
Cooling CM Hyper 212 EVO
Memory 2 x 8 GB Corsair Vengeance
Video Card(s) MSI RTX 2070 Super
Storage Samsung 850 EVO 250 GB and WD Black 4TB
Display(s) Dell 27 inch 1440p 144 Hz
Case Corsair Obsidian 750D Airflow Edition
Audio Device(s) Onboard
Power Supply EVGA SuperNova 850 W Gold
Mouse Logitech G502
Keyboard Logitech G105
Software Windows 10
With the brunt of the Pandemic over with and people going back to work and the lockdowns relaxing and fears of the world economy going to hell it's not surprising to see a reduction in demand for electronics considered non-essentials.
 
Joined
Apr 12, 2013
Messages
6,728 (1.68/day)
Pretty sure many of them are going to have to sit back home again! It's particularly sad how many of these companies would rather decrease production instead of reducing executive "compensation" & such useless spending :shadedshu:
 
Joined
Jul 15, 2020
Messages
976 (0.72/day)
System Name Dirt Sheep | Silent Sheep
Processor i5-2400 | 13900K (-0.025mV offset)
Motherboard Asus P8H67-M LE | Gigabyte AERO Z690-G, bios F26 with "Instant 6 GHz" on
Cooling Scythe Katana Type 1 | Noctua NH-U12A chromax.black
Memory G-skill 2*8GB DDR3 | Corsair Vengeance 4*32GB DDR5 5200Mhz C40 @4000MHz
Video Card(s) Gigabyte 970GTX Mini | NV 1080TI FE (cap at 85%, 800mV)
Storage 2*SN850 1TB, 230S 4TB, 840EVO 128GB, WD green 2TB HDD, IronWolf 6TB, 2*HC550 18TB in RAID1
Display(s) LG 21` FHD W2261VP | Lenovo 27` 4K Qreator 27
Case Thermaltake V3 Black|Define 7 Solid, stock 3*14 fans+ 2*12 front&buttom+ out 1*8 (on expansion slot)
Audio Device(s) Beyerdynamic DT 990 (or the screen speakers when I'm too lazy)
Power Supply Enermax Pro82+ 525W | Corsair RM650x (2021)
Mouse Logitech Master 3
Keyboard Roccat Isku FX
VR HMD Nop.
Software WIN 10 | WIN 11
Benchmark Scores CB23 SC: i5-2400=641 | i9-13900k=2325-2281 MC: i5-2400=i9 13900k SC | i9-13900k=37240-35500
Maybe there will be major price cut of AM4 and AM5 in the coming months. That would be awesome
Not so much, but probably new and more attractive ones.
 
Joined
Apr 22, 2021
Messages
248 (0.23/day)
Well this is gonna be really bad ugly, check for Client segment ~


AMD for me was best placed to weather this storm & they got hammered, I bet this is going to be a bloodbath in the next few quarters especially for those who rely on retail consumers! Oh did I mention OPEC o_O

What's worse, after the report, AMD's after-hours' shares have plummeted even further. It seems all AMD's "outstanding" extra scalping/mining profits were lost in one-quarter. :laugh:
 
Last edited:
Joined
Apr 12, 2013
Messages
6,728 (1.68/day)
Yes the thing is AMD's in a slightly better position than both Intel & Nvidia post the Xilinx acquisition IMO. I'm thinking both of them will see sharp revenue decline extending perhaps to the upcoming 1H 2023 if not longer, the more oil prices squeeze the middle class the more demand destruction will continue & yeah that goes for you too fruity loops company!
 
Joined
Apr 22, 2021
Messages
248 (0.23/day)
Yes the thing is AMD's in a slightly better position than both Intel & Nvidia post the Xilinx acquisition IMO. I'm thinking both of them will see harp revenue decline extending even in the next 1H 2023 if not longer, the more oil prices squeeze the middle class the more demand destruction will continue & yeah that goes for you too fruity loops company!

Not really. Remember, NVIDIA's shares/M-Cap were ~$150B in the 2Q20 that had reached to its record-highs 4Q21 to ~$960B MC.

Today, NVIDIA's MC stands ~300B+. Sure, a deep lost from its record-highs (overvalued) but its today's MC, ~$300B, still stands by double compared to where NVIDIA was two-years-ago. AMD have not / cannot and will not, ever, even come close to any of these numbers.
 
Joined
Nov 4, 2005
Messages
11,654 (1.73/day)
System Name Compy 386
Processor 7800X3D
Motherboard Asus
Cooling Air for now.....
Memory 64 GB DDR5 6400Mhz
Video Card(s) 7900XTX 310 Merc
Storage Samsung 990 2TB, 2 SP 2TB SSDs and over 10TB spinning
Display(s) 56" Samsung 4K HDR
Audio Device(s) ATI HDMI
Mouse Logitech MX518
Keyboard Razer
Software A lot.
Benchmark Scores Its fast. Enough.
A great gain but the crypto crash
 
Joined
Jul 15, 2020
Messages
976 (0.72/day)
System Name Dirt Sheep | Silent Sheep
Processor i5-2400 | 13900K (-0.025mV offset)
Motherboard Asus P8H67-M LE | Gigabyte AERO Z690-G, bios F26 with "Instant 6 GHz" on
Cooling Scythe Katana Type 1 | Noctua NH-U12A chromax.black
Memory G-skill 2*8GB DDR3 | Corsair Vengeance 4*32GB DDR5 5200Mhz C40 @4000MHz
Video Card(s) Gigabyte 970GTX Mini | NV 1080TI FE (cap at 85%, 800mV)
Storage 2*SN850 1TB, 230S 4TB, 840EVO 128GB, WD green 2TB HDD, IronWolf 6TB, 2*HC550 18TB in RAID1
Display(s) LG 21` FHD W2261VP | Lenovo 27` 4K Qreator 27
Case Thermaltake V3 Black|Define 7 Solid, stock 3*14 fans+ 2*12 front&buttom+ out 1*8 (on expansion slot)
Audio Device(s) Beyerdynamic DT 990 (or the screen speakers when I'm too lazy)
Power Supply Enermax Pro82+ 525W | Corsair RM650x (2021)
Mouse Logitech Master 3
Keyboard Roccat Isku FX
VR HMD Nop.
Software WIN 10 | WIN 11
Benchmark Scores CB23 SC: i5-2400=641 | i9-13900k=2325-2281 MC: i5-2400=i9 13900k SC | i9-13900k=37240-35500
All will suffer under the hand of the post-crypto, in-recession era.
Some will suffer more.
 
Joined
Apr 12, 2013
Messages
6,728 (1.68/day)
Not really. Remember, NVIDIA's shares/M-Cap were ~$150B in the 2Q20 that had reached to its record-highs 4Q21 to ~$960B MC.

Today, NVIDIA's MC stands ~300B+. Sure, a deep lost from its record-highs (overvalued) but its today's MC, ~$300B, still stands by double compared to where NVIDIA was two-years-ago. AMD have not / cannot and will not, ever, even come close to any of these numbers.
Why are you we talking about market caps though? It's irrelevant when talking of revenues or potential (future) earnings.

All will suffer under the hand of the post-crypto, in-recession era.
Some will suffer more.
Their GPU division was relatively stable, check the gaming section!
 
Joined
Jul 15, 2020
Messages
976 (0.72/day)
System Name Dirt Sheep | Silent Sheep
Processor i5-2400 | 13900K (-0.025mV offset)
Motherboard Asus P8H67-M LE | Gigabyte AERO Z690-G, bios F26 with "Instant 6 GHz" on
Cooling Scythe Katana Type 1 | Noctua NH-U12A chromax.black
Memory G-skill 2*8GB DDR3 | Corsair Vengeance 4*32GB DDR5 5200Mhz C40 @4000MHz
Video Card(s) Gigabyte 970GTX Mini | NV 1080TI FE (cap at 85%, 800mV)
Storage 2*SN850 1TB, 230S 4TB, 840EVO 128GB, WD green 2TB HDD, IronWolf 6TB, 2*HC550 18TB in RAID1
Display(s) LG 21` FHD W2261VP | Lenovo 27` 4K Qreator 27
Case Thermaltake V3 Black|Define 7 Solid, stock 3*14 fans+ 2*12 front&buttom+ out 1*8 (on expansion slot)
Audio Device(s) Beyerdynamic DT 990 (or the screen speakers when I'm too lazy)
Power Supply Enermax Pro82+ 525W | Corsair RM650x (2021)
Mouse Logitech Master 3
Keyboard Roccat Isku FX
VR HMD Nop.
Software WIN 10 | WIN 11
Benchmark Scores CB23 SC: i5-2400=641 | i9-13900k=2325-2281 MC: i5-2400=i9 13900k SC | i9-13900k=37240-35500
Their GPU division was relatively stable, check the gaming section!
I have.
My comment isn't targeted at specific company and I have no notion nor any assumption to which will suffer more.
One thing i'm sure of- I will lose quite a bit.
 
Joined
Jan 18, 2020
Messages
660 (0.43/day)
Mote than a billion dollars of revenue knocked off third quarter forecast...

Just getting started in my view. This will be a hardware bust for the ages.

Not the time to be delivering expensive power hungry gear, that is for sure. Market has gone.
 
Joined
Feb 27, 2013
Messages
445 (0.11/day)
Location
Lithuania
Not really. Remember, NVIDIA's shares/M-Cap were ~$150B in the 2Q20 that had reached to its record-highs 4Q21 to ~$960B MC.

Today, NVIDIA's MC stands ~300B+. Sure, a deep lost from its record-highs (overvalued) but its today's MC, ~$300B, still stands by double compared to where NVIDIA was two-years-ago. AMD have not / cannot and will not, ever, even come close to any of these numbers.
Yes, because we know that people tend to invest based on the performance of the company and are totally not gambling based on hype... Such a good measurement of performance.
 
Joined
Jul 15, 2020
Messages
976 (0.72/day)
System Name Dirt Sheep | Silent Sheep
Processor i5-2400 | 13900K (-0.025mV offset)
Motherboard Asus P8H67-M LE | Gigabyte AERO Z690-G, bios F26 with "Instant 6 GHz" on
Cooling Scythe Katana Type 1 | Noctua NH-U12A chromax.black
Memory G-skill 2*8GB DDR3 | Corsair Vengeance 4*32GB DDR5 5200Mhz C40 @4000MHz
Video Card(s) Gigabyte 970GTX Mini | NV 1080TI FE (cap at 85%, 800mV)
Storage 2*SN850 1TB, 230S 4TB, 840EVO 128GB, WD green 2TB HDD, IronWolf 6TB, 2*HC550 18TB in RAID1
Display(s) LG 21` FHD W2261VP | Lenovo 27` 4K Qreator 27
Case Thermaltake V3 Black|Define 7 Solid, stock 3*14 fans+ 2*12 front&buttom+ out 1*8 (on expansion slot)
Audio Device(s) Beyerdynamic DT 990 (or the screen speakers when I'm too lazy)
Power Supply Enermax Pro82+ 525W | Corsair RM650x (2021)
Mouse Logitech Master 3
Keyboard Roccat Isku FX
VR HMD Nop.
Software WIN 10 | WIN 11
Benchmark Scores CB23 SC: i5-2400=641 | i9-13900k=2325-2281 MC: i5-2400=i9 13900k SC | i9-13900k=37240-35500
Evaluation the company product strength by day-to-day stock market jumps nowadays is viable as deciding if the burger is tasty by counting the number of sesames on the bun.
 
Joined
Jul 10, 2017
Messages
2,671 (1.09/day)
Pretty sure many of them are going to have to sit back home again! It's particularly sad how many of these companies would rather decrease production instead of reducing executive "compensation" & such useless spending :shadedshu:
In some Japanese company, maybe? Not in the West. That's the one and only purpose of corporations - to make money for the execs and the board.
At the end, they will make some money to distribute among them. Question is will it be in a sustainable way?
 
Joined
Jun 5, 2018
Messages
212 (0.10/day)
I've been saying the writing is on the wall for the PC industry for a while. These latest product launches from Nvidia, AMD and Intel driven by their respective CEO's gold fever from the cryto boom, now finally crashing with the reality that the world doesn't want $5k gaming builds, they want to be able to pay their gas and their rent. This is just the beginning. I expect no less than 20% price cut accross the board for all of their products by the end of the year.
 

wolf

Performance Enthusiast
Joined
May 7, 2007
Messages
7,726 (1.25/day)
System Name MightyX
Processor Ryzen 5800X3D
Motherboard Gigabyte X570 I Aorus Pro WiFi
Cooling Scythe Fuma 2
Memory 32GB DDR4 3600 CL16
Video Card(s) Asus TUF RTX3080 Deshrouded
Storage WD Black SN850X 2TB
Display(s) LG 42C2 4K OLED
Case Coolermaster NR200P
Audio Device(s) LG SN5Y / Focal Clear
Power Supply Corsair SF750 Platinum
Mouse Corsair Dark Core RBG Pro SE
Keyboard Glorious GMMK Compact w/pudding
VR HMD Meta Quest 3
Software case populated with Artic P12's
Benchmark Scores 4k120 OLED Gsync bliss
Who could've seen that coming... I notice a few vocal members are absent in this one.

Just don't get too AMgreeD AMD, read the play.
 
Joined
Jul 10, 2017
Messages
2,671 (1.09/day)
Who could've seen that coming... I notice a few vocal members are absent in this one.

Just don't get too AMgreeD AMD, read the play.
Never fear, I is here!

Do you honestly believe somehow nvidia or intel will report revenues above targets?
 
Joined
Apr 12, 2013
Messages
6,728 (1.68/day)
Just don't get too AMgreeD AMD, read the play.
You're undermining the message if you think it's just relegated to AMD, in a shrinking market the "premium" brands lose just as much if not more! I was hoping the war could be over before winter but I guess that's a pipedream now.
 
Joined
May 2, 2017
Messages
7,762 (3.08/day)
Location
Back in Norway
System Name Hotbox
Processor AMD Ryzen 7 5800X, 110/95/110, PBO +150Mhz, CO -7,-7,-20(x6),
Motherboard ASRock Phantom Gaming B550 ITX/ax
Cooling LOBO + Laing DDC 1T Plus PWM + Corsair XR5 280mm + 2x Arctic P14
Memory 32GB G.Skill FlareX 3200c14 @3800c15
Video Card(s) PowerColor Radeon 6900XT Liquid Devil Ultimate, UC@2250MHz max @~200W
Storage 2TB Adata SX8200 Pro
Display(s) Dell U2711 main, AOC 24P2C secondary
Case SSUPD Meshlicious
Audio Device(s) Optoma Nuforce μDAC 3
Power Supply Corsair SF750 Platinum
Mouse Logitech G603
Keyboard Keychron K3/Cooler Master MasterKeys Pro M w/DSA profile caps
Software Windows 10 Pro
Is anyone surprised by this? The pandemic saw the biggest surge in tech and hardware sales in ages, stacked on top of the crypto boom. And given that most hardware these days is good enough to last for quite a few years, was anyone expecting anything but a major sales slump as lockdowns ended, people started taking up old (non-PC-based) hobbies and activities, and crypto crashed?

If anything, this just demonstrates - for the umpteenth time, but they never learn - how the business world seems utterly blind to the fact that capitalism forces boom-bust-cycles on global economics, and that there's no such thing as a major boom without a subsequent regression. That's just now how these systems work - there are concrete limits to how much demand can be created, no matter your marketing abilities, and when markets saturate, sales drop drastically.

The only bad thing about this is that it's treated as if it is a bad thing. This is normal. The world doesn't need runaway replacement rates of functioning products. If shareholders and finance people didn't panic at the merest sign of slowdown, this wouldn't even be worthy of note beyond "yes, obviously this is the case."
 
Top