Sep 29, 2022 (PressReach.com via COMTEX) -- The price of Advanced Micro Devices /zigman2/quotes/208144392/composite AMD -1.65% dropped on Thursday as a result of Susquehanna Investments’ observation that the PC market, which has been declining, is where the company is continuing to grow.
In light of channel checks pointing to lower notebook builds and PC shipments, now at -20% year-over-year and -17% year-over-year, respectively, analyst Christopher Rolland, who has a positive rating for AMD, lowered his estimates and price target for the company, as well as for Intel /zigman2/quotes/203649727/composite INTC -1.11% and Nvidia /zigman2/quotes/200467500/composite NVDA -1.51% .
Rolland pointed out that Advanced Micro Devices /zigman2/quotes/208144392/composite AMD -1.65% had been gaining market share in Chromebooks as well as laptop and desktop CPUs even before the launch of its Ryzen 7000 series . That is not sufficient for the company to maintain its estimates, though.
In a note to customers, Rolland stated, “Overall, we are lowering expectations for AMD, INTC, and NVDA to reflect our revised PC shipment outlook and weaker PC industry checks (and the US prohibition on AI GPUs).” Intel /zigman2/quotes/203649727/composite INTC -1.11% and Nvidia /zigman2/quotes/200467500/composite NVDA -1.51% both had declines of 1% and 2%, while Advanced Micro Devices /zigman2/quotes/208144392/composite AMD -1.65% slid over 1.5% to $67.42.
Rolland, who was conducting channel checks, said the retail GPU pricing has decreased below MSRP, and high-end GPUs have decreased by as much as 30% below MSRP, according to Rolland, who was conducting channel checks. The secondary market, such as eBay, has seen an even greater decrease.
The analyst also noted that Nvidia /zigman2/quotes/200467500/composite NVDA -1.51% had lost market share on the desktop while gaining market share on laptops and aftermarket GPUs. Additionally, he mentioned that desktop GPU attach rates were stable while laptop GPU attach rates were up.
Rolland highlighted that prices had risen 10.8% sequentially and that attach rates for internal solid-state drives remained very high. Due to a “further deterioration” in the consumer PC market and the need to clear excess inventory, Bank of America this week reduced its expectations for both Advanced Micro Devices /zigman2/quotes/208144392/composite AMD -1.65% and Intel /zigman2/quotes/203649727/composite INTC -1.11% .
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