Samsung and AMD’s profit slump suggests industry trouble for chipmakers

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Everyone already bought all the tech they needed in 2021.

, this week, Samsung is reporting a 32 percent sales guidance cut, while AMD warned investors it’s going to miss its previous forecast by about $1 billion.

Slumping PC sales provide an obvious explanation for why processors from AMD and Intel are not in as high demand as they were early in the pandemic. Everyone simultaneously had an incentive to upgrade their laptops, gaming machines, and work-from-home setups, but now sales have slowed., is “to enable the PC ecosystem to have better products than what is done by the Mac. Period.

that other OEMs are also facing high inventory and low demand. “OEMs had piled inventory in 2021 and first half of 2022 — during shortages — panic buying / double-triple ordering, etc.” said the analysts. They also pointed out that these warnings from Samsung and AMD are due to the weak forecasts in PCs, smartphones, and consumer electronics, even though other areas like automotive are strong comparatively.

 

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