01

AMD PC chip sales rose 42%

Intel drops 3%

This can be seen in the financial results of AMD and Intel in the United States involving PC semiconductors from July to September of fiscal year 23.

AMD's PC semiconductor sales in the July-September period of fiscal year 23 increased 42% year-on-year to $1.5 billion. The company's business units also include data center semiconductors and gaming semiconductors, but sales were flat, each down 8% year-over-year, with only PC sales growing.

Intel's PC semiconductor sales in the July-September period of fiscal 23 were $7.9 billion, down 3% from a year earlier. But the decline was smaller than the 10% drop analysts had expected, the Wall Street Journal reported.

According to Reuters, the latest results from AMD and Intel show that the PC market recovery is accelerating, which is good news for an industry that continues to struggle with oversupply in the wake of the pandemic.

02

Bullish on PC chip demand in 2024

According to the Wall Street Journal, AMD expects PC semiconductor sales to grow 27% year over year in 2024, and Intel sales to grow 13% year over year. This reflects the companies' high expectations for a market recovery.

According to the report, one of the reasons for this is that both companies believe that AI-equipped PCS, which are expected to launch in 2024, will be popular. According to Reuters, executives from both companies expressed confidence on earnings calls that AI integration (with PCS) will drive market growth.

"Ai-powered PCS will fundamentally redefine the computing experience over the next few years," said AMD CEO Lisa Hsu. "The advent of AI-driven PCS represents a turning point for the PC industry," said Pat Gelsinger, Intel's chief executive.

03

Due to the generative AI craze

Increased demand for NVIDIA Gpus

On the other hand, the data center semiconductor market, one of the two companies' main businesses, is changing. With the recent boom in generative AI, the demand for accelerated computing based on NVIDIA Gpus (image processing semiconductors) is increasing. Tech giants such as Microsoft, Google, Amazon, and Meta have devoted much of their capital spending to building AI servers, and Nvidia has benefited.

Nvidia's data center division, which includes artificial intelligence semiconductors, had fiscal year 23 sales of about $10.32 billion, 2.7 times that of the same period last year, accounting for 76% of total sales. According to the Wall Street Journal, Nvidia's revenue in the August-October quarter of fiscal year 23 is expected to triple from the same period last year. Nvidia will report its earnings for the August-October period on November 21, 2023 (US time).