AMD Has a PC Problem Just Like Intel: Chip Giant Warns of Weaker Demand as It Plans for a ‘Double-Digit’ Market Decline in 2027
AMD Has a PC Problem Just Like Intel: Chip Giant Warns of Weaker Demand as It Plans for a ‘Double-Digit’ Market Decline in 2027
Radhika Anilkumar NadigWed, November 4, 2026 at 7:07 AM UTC
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Advanced Micro Devices Inc. (NASDAQ:AMD) has a PC problem, the same one Intel Corp. flagged days ago: higher memory costs are reducing demand.
Even so, AMD shares rose about 5% in after-hours trading Tuesday after the chipmaker beat third-quarter estimates and guided fourth-quarter revenue above expectations.
Memory Costs Weigh on PC Demand
“Higher memory and component costs weighed on demand,” CEO Lisa Su told analysts on the company’s earnings call, as PC sales slowed late in the third quarter.
Consumer markets, she said, would be more sensitive to higher system prices.
The slowdown showed in AMD’s Client segment, which covers PC chips. Revenue was $2.95 billion, up 7% from a year earlier but down about 4% from the second quarter.
Plans for a Smaller PC Market in 2027
Looking ahead, Su said the company expects PC shipments across the market to fall by a “double-digit percentage” in 2027, and it is managing inventory carefully until then.
The company still expects to outperform the overall PC market, Su said, by selling more to businesses and buyers of higher-end PCs, and it has the least exposure to the volatile low end.
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Intel Is More Exposed to PCs
Intel shares plunged 28.58% Friday after it guided fourth-quarter earnings and revenue below analyst expectations, as concerns grew about weak PC demand and memory-related pressures extending into 2027.
Bank of America analyst Vivek Arya said Intel is more exposed to PCs than data centers as customers shift more of their IT budgets to AI infrastructure.
AMD’s mix leans the other way. Data Center contributed 64% of third-quarter revenue, against about 22% for Client, the segment that covers PC chips.
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AMD Tops Q3 Estimates and Lifts Q4 Outlook
The company reported third-quarter revenue of $13.38 billion, ahead of the $13.10 billion analyst estimate, according to Benzinga Pro data. Adjusted earnings came in at $2.09 per share, beating the $1.89 estimate.
For the fourth quarter, the chipmaker expects revenue of about $17 billion, plus or minus 3%, versus the $16.13 billion estimate.
Price Action: Shares closed 3.65% higher on Tuesday at $483.90 and rose 5.02% to $508.20 in extended trading after its third-quarter earnings report.
Despite a 23.40% slide over the past month, AMD shares are up 116.54% year to date and 86.37% over the past 12 months.
Benzinga Edge rankings indicate AMD’s stock has Momentum and Growth scores in the 95th percentile.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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This article AMD Has a PC Problem Just Like Intel: Chip Giant Warns of Weaker Demand as It Plans for a ‘Double-Digit’ Market Decline in 2027 originally appeared on Benzinga.com
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