AMD CEO Lisa Su predicts client PC declines of double-digit percentage points in 2027. This is a major change for consumers, which could lead to increased prices and decreased supply. This decrease is a result of the consumer PC market experiencing a recession. However, the enterprise market is still growing with increased EPYC CPU and Instinct MI accelerator demand.
Memory shortages force component price hikes ahead of predicted consumer market recession
The main change in this market is that costs of components are increasing. There's a shortage of supply for GPU memory and system RAM which is causing the price to go up. AMD increased the cost of GDDR6 to their board partners by 8-10% in Q3.
They have plans to increase prices even further in November. These increases in cost are causing the price of the consumer PC to go up.
AMD is planning to deal with these circumstances with their Ryzen roadmap. They plan to do better than the average market performance even with this decline. They're focusing on their competitiveness in the consumer market. Their enterprise growth is offsetting the decline in the consumer market.
It's clear that there's a separation in the market between consumer hardware and enterprise hardware. The consumer market will need to prepare for increased costs and potentially a decrease in sales. On the other hand, the enterprise market will see more AI and server infrastructure growth. AMD is trying to balance these two very different market forces.
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