AMD may see a decrease in the Number of its CPU and GPU sales next year

Nivedita Bangari

Jul 4

The sales of AMD's processors and graphics chips for client PCs may decrease noticeably in the next year, according to recent research by Northland. The estimate confirms a report from today that AMD will decrease its purchases from TSMC in the upcoming quarters because of demand worries. Sales of gaming consoles and AMD SoCs for PlayStation and Xbox systems, according to the Northland analyst, will increase in 2023.

According to analyst Gus Richard's note to investors on Friday, income from GPUs will increase by 7% YoY in 2023 while sales of AMD's PC CPUs (which comprise chips for desktops and laptops) would decline by 6% YoY. A total of $675 million in sales will be lost by AMD in 2023 as a result of a decline in client system demand.

Sales of system chips for Sony's PlayStation 5 and Microsoft's Xbox Series X|S are expected to rise by $400 million next year, up from the previously anticipated $740 million. This figure takes into account the fact that 2023 will be the third year in the lifecycle of video game systems when sales typically triple.

On the business front, Northland anticipates that sales of AMD EPYC server CPUs will increase while they acquire market share

The investment company predicts that AMD's server revenue will rise by $3.1 billion, or 55%, year over year in 2023. The analyst notes that sales of server parts will counterbalance any effects from other areas. Field-programmable gate array (FPGA) shipments from Xilinx are also anticipated to decline by 6%, which is typical for post-merger firms.

"We scrubbed our AMD numbers and lower our [2023] estimates to comprehend a global economic slowdown that will likely impact PC CPUs, GPUs, game consoles, and XLNX," Richard wrote in a note to clients," wrote Richard.

Due to the current violent Russian-Ukrainian war, worldwide geopolitical tensions, and global inflation, businesses appear to be generally quite hesitant regarding sales of their client PC gear. As a result, it is not unexpected to find a report like this from an investing business. Nevertheless, no one can foretell what the future will hold, therefore depending on whether you are an optimist or a pessimist, you should take prophecies with a grain of salt or sugar.