Advanced Micro Devices Inc Chief Executive Officer Lisa Su on Thursday flagged a slowdown in personal computers (PC) this year after two years of a "very strong PC market".
(Sign up to our Technology newsletter, Today’s Cache, for insights on emerging themes at the intersection of technology, business and policy. Click here to subscribe for free.)
Su, at the chip company's analyst day, said while the downturn was natural after a long period of high, the market for high performance and adaptive computing was "great".
Research firm Canalys said in a note last week that demand for consumer and education PC segments has further slowed due to market saturation and inflation concerns, after reporting first-quarter U.S. PC shipments underwent a third consecutive quarter of decline.
AMD said on Thursday it has seen a "tremendous" increase in demand for its cloud computing, data centre chips and those used in artificial intelligence applications.
It expects gross margin of over 57% in the near future and an operating margin in the mid 30% range. In the first quarter, the company reported a gross margin of 48% and operating margin of 16%.
In May, AMD said it expected non-GAAP gross margin for 2022 to be about 54%, while forecasting full-year and second-quarter revenue higher than Wall Street estimates.
