The analyst at Morgan Stanley projects that the market recovery of Intel brought on by its 12th Gen Alder Lake CPUs will cause AMD’s Ryzen Desktop CPU revenue to decline by 26 percent in 2022. In a recent market research, Joseph Moore of Morgan Stanley predicted that AMD’s desktop PC market revenue, which is mostly made up of its Ryzen CPUs, could drop significantly. The analyst’s forecast that AMD could suffer a 26 percent revenue loss was influenced by a number of variables.
A resurgent Intel, which has found success with its 12th Gen Alder Lake CPUs, will compete fiercely with AMD in addition to the reality that the PC business will be contracting overall in 2022. As a result, it is projected that AMD’s Ryzen CPUs will have a year over year revenue decline of 26%.
When the company releases its first Zen 4 goods later this year, especially Ryzen 7000 CPUs and more choices for the powerful AM4 platform, the company will start to profit. The company is therefore expected to see a market revenue decline of only 2% in 2023 and a subsequent period of relative stability.
Prior to the introduction of Intel’s 12th Gen Alder Lake CPUs, AMD didn’t provide any competitive options for AM4 users.
They started out slowly as a result, which could have affected them. However, it seems as though even motherboard producers are losing faith in the overall PC market and have lowered their 2022 projections. While Gigabyte anticipated 9.5 million machines will be shipped in 2022, ASUS projects a total of 14 million. In comparison, in the previous year, each manufacturer exported 18 million and 13 million units, respectively.
In 2022, ASUS and Gigabyte predict a 24 and a 27 percent fall in motherboard sales, respectively, according to DigiTimes. There will be a reduction in motherboard sales, from 40 million to just 30 million worldwide.
The market may see a minor boost from the release of AMD’s Ryzen 7000 & Intel’s 13th Gen Desktop CPUs later this year, but the PC DIY market is expected to stay in a dismal state until the end of 2023 due to rising inflation. The variance in motherboard shipping volume from 2019 to 2022 is seen in the following table.