So, $AMD (Advanced Micro Devices Inc) earnings are also now published. For the reporting quarter AMD beats on revenue and EPS, which given the current economic climate (and the recent disastrous numbers over at $INTC (Intel) seems better than could have been expected).
The key negative take from the earnings release is the news that sales are anticipated to drop for the current active quarter due primarily to a broader market decline in PC sales. It is worth acknowledging here that Microsoft also made a similar statement during its recent release.
I think it is pretty clear to anyone with eyes that the windows PC market is naturally going to continue its decline as tablet performance gets better and cloud based services continue to evolve, although it certainly isn’t going away soon (particularly for corporate use).
Like Microsoft AMD will continue to adjust its business model in favour of other resources, namely server based, business, cloud, military & space applications. We should also recognise the fact that AMD only recently completed the expensive acquisition of Xilinx with precisely this target in mind.
AMD is currently +2% after hours following the beat here but we may not see this explode based on the factors above. Long term AMD remains a solid company but it might be a while before the price recovers to where it was.
https://www.cnbc.com/2023/01/31/amd-earnings-q4-2022.html