According to data from the American research company IDC, global PC shipments from July to September 2023 were 68.2 million units, a year-on-year decrease of 7.6%. Since the beginning of 2022, PC sales have fallen sharply after two years of growth due to the stay-at-home demands of the coronavirus pandemic. However, the decline in July-September was an improvement compared to the double-digit declines in the previous five quarters. In its research report, IDC predicts that the PC market will recover moderately in the coming months.

01 AMD PC chip sales rise 42%, Intel fell 3%

This situation can be seen from the financial results of US AMD and US Intel involving PC semiconductors from July to September in FY23.

AMD's PC semiconductor sales increased 42% year-on-year during the July-September period of FY23, reaching US$1.5 billion. The company's business units also include data center semiconductors and gaming semiconductors, but sales were flat, down 8% year-on-year respectively, with only PC sales increasing.

Intel's PC semiconductor sales during the July-September period of fiscal year 23 were US$7.9 billion, a year-on-year decrease of 3%. But according to the Wall Street Journal, the decline was less than the 10% expected by analysts.

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

02 Optimistic about PC chip demand in 2024

According to the Wall Street Journal, AMD expects PC semiconductor sales to increase by 27% year-on-year in 2024, and Intel sales will increase by 13% year-on-year. This reflects both companies' high expectations for market recovery.

According to the report, one reason for this is that both companies believe that AI-equipped PCs expected to be launched in 2024 will be popular. According to Reuters, executives from both companies expressed confidence during earnings calls that the integration of artificial intelligence (with PCs) will drive market growth.

“AI-powered PCs will fundamentally redefine the computing experience in the coming years,” said AMD CEO Lisa Hsu. “AI-powered PCs will fundamentally redefine the computing experience in the coming years,” said Intel CEO Pat Gelsinger. The emergence of PC represents a turning point in the PC industry."

03 Because of 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 artificial intelligence, demand for accelerated computing based on NVIDIA GPUs (image processing semiconductors) is increasing. Tech giants such as Microsoft, Google, Amazon and Meta have spent most of their capital expenditures building AI servers, with Nvidia also benefiting from this.

NVIDIA's data center division, which includes artificial intelligence semiconductors, had sales of approximately US$10.32 billion in fiscal year 23, 2.7 times that of the same period last year, accounting for 76% of total sales. Nvidia's revenue in the August-October quarter of FY23 is expected to triple from the same period last year, The Wall Street Journal reported. Nvidia will announce its financial report for the period from August to October on November 21, 2023 (U.S. time).

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