Report
Pierre FerraguÊ

Bible 3Q23 – PCs: inventory correction behind us, but end-demand remains weak & could weaken further.

Today, we are publishing the PCs section of our 21st Tech Infrastructure Quarterly Bible. The Tech Bible is a must-read for any tech investor, as it summarizes the quarterly earnings reports from the over 130 companies we track, providing an update on our key perspectives and convictions.

The PC market is past the bottom, with channel inventories nearly back to normal, but end-demand remains weak. This is a risk to monitor, as it could mean that the cyclical rebound driven by the end of inventory corrections could be very short-lived. CPU revenues again grew strongly sequentially as OEM inventories are back to normal, and CPU vendors are now again shipping to end-demand. AMD’s share increased 3pts, but remain below pre-correction levels, and 4Q23 guides imply AMD’s share plateauing in mid-teens.
Underlyings
Advanced Micro Devices Inc.

Advanced Micro Devices is a semiconductor company. The company primarily provides x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit, chipsets, graphics processing units (GPUs), data center and personnel GPUs, and development services; server and embedded processors, semi-custom System-on-Chip products, development services and technology for game consoles. The company also licenses portions of its intellectual property portfolio. The company's segments are: Computing and Graphics, which consists of desktop, notebooks, commercial, and chipsets products; and Enterprise, Embedded and Semi-Custom, which includes server processors, and embedded P\processors products.

Intel Corporation

Intel is a data-centric company. The company's operating segments are: Data Center Group, which develops platforms for compute, storage, and network functions; Internet of Things Group, which facilitates its customers creating, storing, and processing data; Mobileye, which provides assistance and automation solutions; Non-Volatile Memory Solutions Group, which provides memory and storage products based on Intel? Optane? technology and Intel? 3D NAND technology; Programmable Solutions Group, which provides programmable semiconductors; and Client Computing Group, which connects people to data, allowing each person to focus, create, and engage in ways that unlock their individual potential.

Provider
New Street Research
New Street Research

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Analysts
Pierre FerraguÊ

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