AMD expects slow growth for PC business in 2022

Advanced Micro Devices (AMD) CEO Lisa Su said there will ve a slowdown in personal computer (PC) business this year after two years of a “very strong PC market”.
AMD CEO
Lisa Su, at the chip company’s analyst day, said the downturn was natural after a long period of high. She said 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 slowed due to market saturation and inflation concerns, after reporting first-quarter U.S. PC shipments underwent a third consecutive quarter of decline.

Research firm IDC said global shipments of PCs will fall 8.2 percent in 2022 to 321.2 million units. Similarly, IDC has lowered the forecast for worldwide tablet shipments to 158 million units, a 6.2 percent decline compared to 2021.

AMD said on Thursday it has seen a tremendous increase in demand for its cloud computing, data center chips and those used in artificial intelligence applications.

AMD expects gross margin of over 57 percent in the near future and an operating margin in the mid 30 percent range. In the first quarter, the company reported a gross margin of 48 percent and operating margin of 16 percent.

In May, AMD said it expected non-GAAP gross margin for 2022 to be about 54 percent.