AMD's desktop and laptop CPU sales will decrease by 6.6 percent year over year in 2023, while consumer GPU sales will decrease by 7 percent. In total, this market segment will net the company about $675 million less than in 2022.
Richard projects that the PlayStation 5 and the Xbox Series X/S will all be powered by AMD SoCs. The company's game console revenue will only increase by $400 million, or about 8 percent YoY, according to Richard. This figure is significantly lower than his previous projection, which predicted a $740 million increase.
Xilinx's earnings are expected to fall by 6.4 percent next year, according to AMD. The semiconductor company mainly sells FPGAs and CPLDs.
AMD's enterprise revenue might fare even better, with an increase of 55 percent YoY, or about $3.1 billion. AMD's EPYC server CPUs are "at the top of the stack next year," according to Richard, thereby reducing the impact of declining sales in its other market segments.
The analyst also slightly reduced his price objective for AMD's stock from $97 to $95. The company's stock price is currently sitting at $73, after losing about 30 percent in the past month.
AMD, Apple, and Nvidia are planning to reduce their wafer orders from TSMC due to a drop in consumer demand for high-end electronics earlier this week.