Analysts AMDs position in the PC market wasnt that strong

Analysts: AMD’s position in the PC market wasn’t that strong, and Intel is hurting itself

By the end of this month, Intel and AMD will report their latest quarterly results, so many industry analysts are already formulating their forecasts for them. Bernstein officials said they wrongly attributed AMD’s consumer processor business to being more resilient than Intel’s. The first of the companies was forced to sell the latest processors at a discount, and the second harms itself with its policy.

    Image source: Intel

Image source: Intel

amber experts lowered AMD stock price forecast of $95-$80, citing the continuation of negative trends in the PC market as well as previously erroneous claims that AMD’s business would suffer less than Intel’s in such conditions. AMD’s new PC components, which were introduced just a few months ago, are now being sold at significant discounts, according to the authors of the research note, which, given the cost growth of all market participants, could lead to a decline in the company’s profit margin in the medium term. Bernstein officials are overly optimistic about their peers’ forecasts, which mention possible growth in profit margins in the second half of the year. AMD shares after the publication of such a forecast fell in price by 2.5%.

Many analysts agree that little can stand in the way of the success of AMD’s server processors. Even if the company doesn’t do very well in the consumer space, this is partially offset by revenue growth in the server segment. KeyBanc Capital Markets experts even ranked AMD stock as one of those securities that will outperform the market in the current macroeconomic situation, as it can “soft-land” towards servers due to successes. NVIDIA and Qualcomm were identified by the forecast writers as issuers whose businesses would be more resilient to consumer issues in such a situation.

Referring to Intel’s business prospects, Bernstein bemoaned the processor giant’s “self-destructive behavior,” which continues to both lower the prices of its products and abuse the volume of product shipments to the market. According to experts, the overproduction crisis is not forcing Intel to limit the volume of product deliveries to reasonable values. According to Bernstein, Intel management could just let the situation take its course and desperately try to improve financial performance in the coming months.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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