The company is suffering amid lower demand for its computer chip produced for data centres. The company has reported revenues down by 9.2% year-on-year to $5.35 billion beating Q1 2023 consensus by $40 million. It has also reported strong profit of $970 million despite its margin being down below 50% amid lower demand from large clients. Meanwhile, Intel, the major peer of AMD, has reported losses and extra capex to modernise its production facilities and build new plants.

New chips for Genoa servers along with the MI300, the world’s first integrated GPU and CPU, are expected to be launched by AMD in the second half of 2023. Analysts’ forecast that AMD’s revenues will be up to $6.17 billion in the Q3 and up to $6.6 billion in Q4 2023. These figures include the expected recovery of desktop sales to the level of 2019 (roughly $1.45 billion), but ignore a possible elevated demand from data mining and AI firms. Thus, the final financial results could be above expectations, which will have a positive effect on stock prices.