From the report it is difficult to tease out if this is industry specific or a harbinger of things to come economy-wide.*
From CNBC:
- AMD issued preliminary third-quarter results on Thursday that are well below its initial guidance.
- AMD also said that its non-GAAP gross margin is expected to come in around 50%, while it had previously expected gross margin to be closer to 54%.
....MUCH MORE
And the press release, October 6:
AMD Announces Preliminary Third Quarter 2022 Financial Results
AMD (NASDAQ:AMD) today announced selected preliminary financial results for the third quarter of 2022.
Third quarter revenue is expected to be approximately $5.6 billion, an increase of 29% year-over-year. AMD previously expected revenue to increase approximately 55% year-over-year at the mid-point of guidance. Preliminary results reflect lower than expected Client segment revenue resulting from reduced processor shipments due to a weaker than expected PC market and significant inventory correction actions across the PC supply chain.
Revenue for the Data Center, Gaming, and Embedded segments each increased significantly year-over-year in-line with the company’s expectations.
Gross margin is expected to be approximately 42% and non-GAAP(*) gross margin is expected to be approximately 50%. AMD previously expected non-GAAP gross margin to be approximately 54%. The gross margin shortfall to expectations was primarily due to lower revenue driven by lower Client processor unit shipments and average selling price (ASP). In addition, the third quarter results are expected to include approximately $160 million of charges primarily for inventory, pricing, and related reserves in the graphics and client businesses....
....MUCH MORE
And September's "P/E is Easy, It's Getting The 'E' That's Hard: "The closing scissors and profits'"
What with the price of entrails—much less a haruspex to do the reading—these days, harbingers and portents are a real money saver.
