The Mercury Research analyst explained, “Most of the downturn in shipments is blamed on excess inventory shipping in prior quarters impacting current sales.” A perfect storm is thus brewing as “CPU suppliers are also deliberately limiting shipments to help increase the rate of inventory consumption… [and] PC demand for processors is lower, and weakening macroeconomic concerns are driving PC OEMs to reduce their inventory as well.” Mercury also asserted that the trend is likely to continue through H1 2023. Its thoughts about the underlying inventory shenanigans should also be evidenced by upcoming financials from the major players in the next few months. […]
McCarron shines a glimmer of light in the wake of this gloom, reminding us that overall processor revenue was still higher in 2022 than any year before the 2020s began. Another ray of light shone on AMD, with its gains in server CPU share, one of the only segments which saw some growth in Q4 2022. Also, AMD gained market share in the shrinking desktop and laptop markets.
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