AMD flags slow market for PCs in 2022

(Reuters) - Advanced Micro Devices Inc Chief Executive Officer Lisa Su on Thursday flagged a slowdown in personal computers (PC) this year after two years of a "very strong PC market".

Su, at the chip company's analyst day, said while the downturn was natural after a long period of high, the market for high performance and adaptive computing was "great".

Research firm Canalys said in a note last week that demand for consumer and education PC segments has further slowed due to market saturation and inflation concerns, after reporting first-quarter U.S. PC shipments underwent a third consecutive quarter of decline.

AMD said on Thursday it has seen a "tremendous" increase in demand for its cloud computing, data center chips and those used in artificial intelligence applications.

It expects gross margin of over 57% in the near future and an operating margin in the mid 30% range. In the first quarter, the company reported a gross margin of 48% and operating margin of 16%.

In May, AMD said it expected non-GAAP gross margin for 2022 to be about 54%, while forecasting full-year and second-quarter revenue higher than Wall Street estimates.

(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)

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