AMD shares sink on forecast miss as PC market remains weak

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Advanced Micro Devices shares slumped on Tuesday after the chipmaker forecast quarterly sales below estimates due to a weak PC market, overshadowing the company's optimism that the chip market would start to recover in the second half of 2023.

The logo of semiconductor company Advanced Micro Devices Inc is seen on a graphics processing unit chip in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photoshares slumped on Tuesday after the chipmaker forecast quarterly sales below estimates due to a weak PC market, overshadowing the company's optimism that the chip market would start to recover in the second half of 2023.

While analysts had watched AMD grab market share in the data center after Intel delayed ramping up the shipping of its most powerful data center processor chip code, named Sapphire Rapids, for over a year, some said they were seeing AMD now stall. Still, AMD CEO Lisa Su told investors on a conference call that the first quarter was the bottom of the market for the company's PC business and the industry.Part of that growth, Su said, will come from a chip called the MI300, which will compete with Nvidia Corp's"We do believe that we will start ramping revenue in the fourth quarter with cloud AI customers, and then it'll be more meaningful in 2024," Su said.

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