AMD CPU Sales to Drop by 6% in 2023, GPUs to Fare Better, Server Revenue to Grow by 55%: Analyst

AMD’s client market will take a backseat in 2023 with the server and premium notebook segments getting a renewed focus. Northland is yet another analyst to echo this sentiment, stating that while CPU and GPU sales will decline, the server and console businesses will have a healthy year. There have been multiple reports in the past few dates claiming a major cessation in orders from three of TSMC’s biggest clients, namely AMD, NVIDIA, and Apple.

According to the analyst, AMD’s PC processor sales will drop by 6% year on year, including the desktop and notebook segments. Interestingly, the GPU market is expected to see a growth of 7% year-on-year in 2023. Overall, AMD will lose $675 million in sales due to reduced demand from the PC market in the coming year. Meanwhile, the AMD SoCs powering the PlayStation 5 and Xbox Series X console are set to witness increased sales, netting $1.140 billion in 2023.

As expected, the server and enterprise division is forecasted to grow at a steady pace. Northland estimates AMD’s server business will get a boost of 55% in revenue, breaching the $3 billion mark in 2023.

We cut our AMD numbers and downgraded our 2023 estimates to understand the global economic slowdown that is likely to affect PC processors, GPUs, game consoles and XLNX.

Northland

Source: SeekingAlpha